Dáil Éireann díospóireacht -
Tuesday, 12 Nov 1991

Vol. 412 No. 5

Written Answers. - National Debt.

Bernard J. Durkan

Ceist:

99 Mr. Durkan asked the Minister for Finance the extent of the increase/ decrease in the national debt in the four years from 1987 to date; if he is satisfied that this trend is in line with targets set in the Programme for National Recovery and the Programme for Economic and Social Progress; if the National Treasury Management Agency has made any recommendations in relation to servicing of this debt; and if he will make a statement on the matter.

Minister for Finance (The Taoiseach)

The following is the amount of the national debt for each of the years 1986-90. In each case the end-year figure is indicated:

	£(m)
1986	21,611
1987	23,694
1988	24,611
1989	24,828
1990	25,117

In theProgramme for National Recovery the target for the national debt was that “the national debt/gross national product ratio will be stabilised in the course of the programme”. This target was very comfortably achieved over the period of the programme, with the national debt/GNP ratio falling from a peak of 131 per cent at the end of 1987 to an estimated 110 per cent by the end of 1990.

The target in theProgramme for Economic and Social Progress is to “reduce the national debt to GNP ratio towards 100 per cent by 1993”. It is the Government's firm intention to achieve this target. The EBR target of 1.5 per cent of GNP for 1993, published in the reviewed Programme for Government, is fully consistent with the Programme for Economic and Social Progress target for the debt/GNP ratio.

The National Treasury Management Agency (NTMA) has been given statutory responsibility for the functions of Exchequer borrowing and managing the national debt including debt service. The 1991 budget provision for debt service costs took account of a £40 million saving to be achieved by the agency. I am pleased to note that not only will this saving be realised but significant additional debt service savings will also accrue in 1991. I am confident that the debt management activities of the NTMA will continue to result in debt service savings in the future.