Skip to main content

Fiscal Deficit

Volume 301: debated on Friday 21 November 1997

The text on this page has been created from Hansard archive content, it may contain typographical errors.

To ask the Chancellor of the Exchequer what is his target for the United Kingdom fiscal deficit related to GNP for the next four years. [15924]

The Government's fiscal policy will be guided by two strict rules:

the golden rule: over the economic cycle the Government will only borrow to invest and not to fund current expenditure; and
public debt as a proportion of national income will be held over the economic cycle at a stable and prudent level.
The July 1997 "Financial Statement and Budget Report" set out medium-term projections for the public finances that showed a continuous decline in the fiscal deficit as a proportion of GDP. A new forecast will be published as part of the Pre-Budget Report.