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Public sector net debt to fall to 1.1% of economy by 2016
The Chancellor says spending cuts will reduce debt payments to £3bn a year by the end of the current parliament
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The Chancellor said public sector net debt will fall from 10.1% of the economy currently, to just 1.1% by the end of the current parliament in 2015/2016.
In his Budget speech, George Osborne said the coalition government's spending cuts will also its annual debt payments fall by £3 billion by the end of the current term, although the structural debt to GDP will rise from 62% of GDP currently to 70% next year and then back down to 67% by 2017.
He said that the country had 'overspent' and had not been 'over-taxed' and 77% of the total consolidation will come through spending cuts with 23% coming from tax rises.
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1 comment so far. Why not have your say?
Jon
Jun 22, 2010 at 21:00
But then we have to repay the remaining 67% of GDP debt !!
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