Britain has the largest structural budget deficit in Europe at £109 billion and is paying £43 billion in debt interest every year, Chancellor George Osborne has said in his Comprehensive Spending Review.
Mr Osborne said his plans would achieve a balanced structural budget and falling national debt by 2014/15.
He said: "It's a hard road but it leads to a better future. We are going to bring the days of never ending borrowing to an end."
He said three principles had been applied to the spending choices made in the CSR - reform, fairness and growth.
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