Seán Power
Ceist:146 Mr. Power asked the Minister for Finance the current national debt; and the long-term policy of the Government in this regard. [18506/96]
Written Answers. - National Debt.
The national debt at 30 September 1996, the latest date for which figures are available, amounted to £29,646 million.
The Government's policy is to maintain low budget deficits in order to continue downward pressure on the debt burden and meet the fiscal criteria set out in the Maastricht Treaty — that is, to adhere to an annual general Government deficit of no more than 3 per cent of GDP and to reduce the general Government debt to GDP ratio towards 60 per cent at a satisfactory pace.
In this context the 1996 budget allowed for an EBR of just £729 million or 2.0 per cent of GNP which equates to a general Government deficit, GGD, of just 2.5 per cent of GDP. The latest Exchequer returns indicate that the EBR and GGD are set to emerge well below the budget target.
The national debt to GNP ratio has declined from a peak of 125 per cent at end of 1987 to 89 per cent at end of 1995. Over the same period, general Government debt as a percentage of GDP has declined from 117 per cent to 82 per cent. It is expected that continued strong economic growth and prudent budgetary policies will see further substantial progress made in 1996 and subsequent years.