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Public Sector Net Borrowing (PSNB) measures the gap between the UK government's total expenditure and its total income from taxes and other sources. It is a key indicator of the fiscal deficit and the overall health of the United Kingdom's public finances. High levels of borrowing may lead to increased issuance of government gilts and can influence future fiscal policy decisions. This figure is closely watched by economists to assess the sustainability of government spending.
Calculated by the Office for National Statistics (ONS) by subtracting total public sector receipts from total public sector expenditure on an accrued basis.