HM TREASURY 10
                                                 December 11, 1997
___________________________________________________________________             

      GOVERNMENT CONSULTS ON ROLE OF PUBLIC SECTOR BALANCE
                      SHEET IN FISCAL POLICY

A discussion paper 'The Public Sector Balance Sheet' has been
published today as part of the consultation process initiated by
Chancellor Gordon Brown in his recent Pre-Budget Report.

The Government has already strengthened the fiscal framework with
its commitment to transparent and measurable fiscal rules and is
committed to developing it further.  The July 1997 Budget
included for the first time information on public sector net
wealth, which takes account of tangible assets as well as net
financial liabilities.  The inclusion of public sector assets
means that the balance sheet offers a richer indication of the
health of the public finances over time than public debt alone. 

The Government  would welcome comments on the issues raised in
the paper, such as measurement issues,  and on the role which
balance sheets should play in setting fiscal policy. 






NOTES FOR EDITORS

1.   To date, balance sheets have not played a large part in the
fiscal policy framework.  There are unresolved questions about
how to measure the assets and liabilities in the balance sheet;
which items should be included; and how to interpret the data. 
However, the National Asset Register (published on 24 November)
and the introduction of resource accounting should greatly
increase the quality of available information on assets held by
central government. 

2.   The Treasury paper gives more detail about the assets and
liabilities that make up the public sector balance sheet.  It
discusses both the measurement of the assets and liabilities in
the present balance sheet and what might be included in the
balance sheet in future.  The paper aims to set out the main
issues rather than give definitive answers. 

3.   Media copies of the discussion paper can be obtained from
the Treasury Press Office on 0171 270 5185.  Non-media copies are
available from the Public Enquiry Unit on 0171 270 4860/4558.

4.   The Chancellor welcomes comments on the issues raised in
this paper, and in the Pre-Budget Report more generally. 
Comments can be sent by post to


The Chancellor of the Exchequer
Pre-Budget 1998
HM Treasury
Parliament Street
London SW1P 3AG

Or e-mailed to budget@hm-treasury.gov.uk.

     



HM TREASURY PRESS OFFICE
Press enquiries to: 0171 270 5238
Non-media enquiries: 0171 270 4860/4870/4880

If you have access to the Internet, you can find this release and
the discussion paper at http://www.hm-treasury.gov.uk. Other
Treasury material can also be found at this address.