Vol. 430 No. 4
92 Mr. Cox asked the Minister for Finance if, in the light of the speed and scale of interest rate reductions since the 1993 budget was formulated and announced, both in fixed interest rates on gilts and in variable interest rates on the money market, he will give an estimate of the additional savings arising to the Exchequer as a result of the change in interest rates compared to those estimated on budget day.
It is correct to state that domestic interest rates have fallen faster than anticipated at budget time and if the current level of rates persists for the remainder of the year there is a good prospect of savings on the budget provision for debt service. However, the eventual outturn for expenditure on debt service cost will also be influenced by international interest and exchange rate developments and the overall conditions on capital markets. Given the uncertainties which surround these factors it is not possible to state with certainly at this stage of the year that the higher than expected reductions in domestic interest rates will be in fact be reflected in a saving to the Exchequer on the 1993 debt service outturn.
