public sector debt repayment
Also found in: Acronyms.
public sector debt repayment (PSDR)the excess of TAXATION receipts over GOVERNMENT EXPENDITURE, enabling the government to use the difference to repay past borrowings. BUDGET SURPLUSES are used as an instrument of FISCAL POLICY as a means of decreasing total spending (AGGREGATE DEMAND) in the economy. See PUBLIC-SECTOR BORROWING REQUIREMENT (PSBR) for further discussion of how fluctuations in economic activity levels and inflation rates affect the government's budgetary position. See BUDGET ( GOVERNMENT), NATIONAL DEBT.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005