B) Fiscal Policy in the UK

Fiscal policy in... UK is guided by two strict rules:

•... Government will borrow only to invest and not to fund current spending;

and

• net public debt as... proportion of GDP will be held at... stable and prudent level.

These rules mean that... taxpayers pay for... current spending and require public borrowing to be kept under firm control.

The Finance Act 1998 established a new Code for Fiscal Stability, which requires fiscal and debt management policy to be carried out in accordance with five key principles:

• transparency in setting fiscal policy objectives, the implementation of fiscal policy and the publication of the public accounts;

• stability in... fiscal policy-making process and in... way that fiscal policy affects... economy;

• responsibility in the management of the public finances;

• fairness, including between... generations; and

• efficiency in the design and implementation of fiscal policy, and in managing both sides of... public sector balance sheet.

In practice it means that the public finance and fiscal strategy in... UK will be aimed at setting overall spending limits for individual departments and planning and controlling public expenditure more strictly within... framework of capital and current budgets.

Ex. 9. a) Supply the prepositions where necessary,