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Mr. Gould
asked the Chancellor of the Exchequer (1) what proportion of the public sector deficit is financed by borrowing abroad;(2) how successful he has been, in percentage terms, in financing the public sector deficit in the current year.
Mr. Denzil Davies
, pursuant to his reply [Official Report, 17th December 1976], gave the following information:The public sector's aggregate borrowing needs are measured by the public sector borrowing requirement (PSBR) rather than the public sector deficit. The
| FINANCING OF THE PUBLIC SECTOR BORROWING REQUIREMENT 1976–77 FINANCIAL YEAR FIRST HALF, SEASONALLY UNADJUSTED | |||
| £million | Percentage of total | ||
| PSBR | … | 5,275 | 100 |
| Financed by— | |||
| Borrowing from the non-bank private sector— | |||
| Notes and coin | … | 580 | 11 |
| Sales of debt | … | 2,123 | 40 |
| Direct external finance of the public sector | … | 1,860 | 35 |
| Borrowing from the banking system— | |||
| in sterling | … | 502 | 10 |
| in foreign currencies | … | 210 | 4 |
Sources:
Bank of England Quarterly Bulletin, December 1976; Central Statistical Office Press Notice on Public Sector Borrowing Requirement, 3rd December 1976.