Public Sector Accounts Measuring performance against fiscal targets

The public sector is the part of the economy that includes central government, local government and public corporations (although these sub-sectors are shown separately in the National Accounts, they are often combined to form public sector aggregate statistics).

To ensure responsible financial management of the public sector, the Chancellor of the Exchequer established two fiscal rules: the golden rule, and the sustainable investment rule.

The golden rule states that, on average over the economic cycle, the Government should borrow only to invest and not to fund current expenditure. So to accord with the rule, the average surplus on current budget over the cycle should be positive. The surplus on current budget is defined as current income (such as taxes), less current expenditure (such as government spending on consumption, interest payments and social benefits), less capital consumption plus capital taxes.

The sustainable investment rule requires that public sector net debt, as a percentage of GDP, will be held, over the economic cycle, at a stable and prudent level. So to accord with the rule, the average surplus on current budget over the cycle should be positive.

ONS releases key statistics covering the surplus on current budget, net debt, net borrowing and net cash requirement. Public sector net borrowing measures the overall budget deficit - the amount by which expenditure exceeds income - for both current and capital transactions.

Statistics are published in the monthly Public Sector Finances First Release. This is produced jointly with HM Treasury. The Public Sector Accounts First Release is a quarterly version of the monthly release. It is consistent with the latest National Accounts update in the third month of each calendar quarter.