Professor John McHale:

This point came up when we appeared before the committee previously and it partly came up earlier also. Even if we follow the existing framework, and that does not require getting into budget surpluses, even if we get to a deficit of about 0.5% of GDP, once we get the debt to below 60% of GDP we are allowed to run a deficit at 1% of GDP. If we were to stay at that level and had around 5% nominal growth, 3% real growth and 2% inflation, the debt to GDP ratio would fall to 20% of GDP over time. I do not see much value in coming up with another target of 45% which would be an intermediate target along the way, given the framework we already have in place and which does not require us to run budget surpluses. The 45% target does not do much harm but I do not see it as adding a huge amount of value either. Will the Deputy remind me of his other question?