In 1965 the network of financial flows reflected the various measures taken to curb domestic demand and to reduce the balance of payments deficit; and the statistics show some resemblances to those for earlier periods when similar actions were taken, especially 1961-62.
The most striking changes in the sector accounts were brought about by the better external performance. In particular, the pattern of public sector finance in 1965 was very different from that in 1964, which was exceptional because of the large balance of payments deficit: in 1965 there was a much smaller increase in the Government's net liabilities to overseas. In addition, the trend continued towards meeting more of the financing needs of local authorities from the Public Works Loan Board; in 1965 local authority capital expenditure increased but most of the increased borrowing was financed by the P.W.L.B. rather than from market sources and thus had to be raised on central government debt.
Published on
01 June 1966
Sector financing 1965