Vol. 474 No. 8
59 Mr. Callely asked the Minister for Finance the proposals, if any, he has to reduce the national debt; the likely developments over the next five years in this regard; the likely repayments on the national debt; if he will give a breakdown for each year in this regard; and if he will make a statement on the matter. [4076/97]
While reducing the national debt is a worthy objective, it is one which should only be pursued with due regard to other policy considerations. Given the remaining development needs of our economy, there are areas where expenditure funded by borrowing is both necessary and justified in order to develop the human and physical infrastructure crucial to the continued growth of the economy. The Deputy will, therefore, appreciate that it is not the trend in its absolute level which is the most important indicator of debt that the trend in the ratio of debt of GDP or GNP, a ratio which measures the relative burden of debt on the economy.
The Government's policy is to continue to reduce the general Government debt to GDP ratio towards 60 per cent at a satisfactory pace, as required by the Maastricht Treaty. This ratio stood at 73 per cent at end 1996. In "Economic Background to the Budget", the following medium-term forecasts of the debt ratio, on the present basis of computation, were given:
|
End-year |
GG debt/GDP ratio |
|
1996 |
73 per cent |
|
1997 |
69 per cent |
|
1998 |
67 per cent |
|
1999 |
64 per cent |
