§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer if he will make it his policy to publish a series of ranges for future PSBR outturns in the annual Financial Statement and Budget report reflecting different economic assumptions; and if he will make a statement.[45487]
§ Mr. DarlingThe March 1998 Financial Statement and Budget Report (FSBR) included estimates of the effect of alternative GDP growth assumptions on the public sector net cash requirement. Published forecasts have also illustrated the effect of uncertainty by including cyclically adjusted deficits based on both a central and cautious assumption of the level of output relative to its trend.
A prudent and cautious approach to the public finances, which allows for uncertainties, is essential if the Government are to achieve their fiscal rules and learn the lessons from the last economic cycle.