Wednesday, 22 April 2009

UK Treasury should offer a PSBR calculator at its website

In the interests of transparency, the UK Treasury should offer an interactive page at its website - a PSBR calculator - where one could plug in different rates for annual growth other than the ludicrously optimistic 3.5% forecast from the Chancellor and see the ripple through effects on the state of the public finances.
I suspect that using a number like 1.5% for the average rate over the next five years would push the expected debt to GDP ratio well above 100% even using the Treasury's selective view of what actually counts as part of the public debt (it's understated of course).

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