... track to meet both fiscal rules. The current budget surplus characterizes the difference between current receipts and current expenditure, taking into account depreciation. The surplus on current budget is predicted to be 2.4 per cent of GDP in 2000-01. It is then projected to decline to 0.8 per cent over the forecast period, mainly because of the increased current spending provided by the 2000 Spending Review, as well as measures announced in Budget 2001 and the Pre-Budget Report. On a cyclically adjusted basis, the surplus on current budget remains positive throughout the period. The average surplus since 1999-2000 also stays positive, remaining above 1 per cent over the next five years. On this assumption, the Government is on track to meet the golden rule. The Government's main objective for fiscal policy is to ensure sound public finances in the medium term. This depends on keeping public debt at a low ...

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