Public sector net cash requirement (PSNCR)

Government spending usually exceeds its income, and the difference is known as a 'public sector net cash requirement' (PSNCR).

The UK government earns income from a number of sources. The main one is taxation. However, it can supplement this through one-off sales and privatisations. This income is spent on public services including the armed forces, education and health.

Government spending usually exceeds its income, and the difference is known as a 'public sector net cash requirement' (PSNCR). Like an individual spending beyond their income, this difference must be funded.

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