(Cavan-Monaghan): Live today and pay tomorrow.
Financial Resolutions, 1978: Financial Statement, Budget, 1978. - Deficit
I opened with a current deficit of £265 million. On the expenditure side I have added about £69 million, allowing for the social welfare savings. From this, however, I am deducting £20 million for unspent balances in the hands of Departments at the end of 1977. This leaves me with a net addition of about £49 million. On the revenue side of the account I have given tax reliefs costing a total of about £91 million. In all, therefore, I am adding £140 million to my opening current deficit, bringing it to £405 million.
To this must be added the Exchequer borrowing requirement for capital purposes of £416 million, leaving me with an Exchequer borrowing requirement of £821 million for 1978, or 13 per cent of GNP—no higher than that envisaged in the manifesto.
I might also mention here that, while a number of the corporation tax reliefs I have announced will not have any significant effect on revenue in 1978, their cost will build up to considerable amounts in a full year.