The Conservative party said that it would deliver £7bn in tax cuts from the £23bn “spare cash” the government will have in 2020 when the annual deficit is turned into a surplus.
The government has already failed to meet its target to wipe out the deficit by 2015. The deficit is the amount by which the government spends more than it receives in tax revenue. The deficit is currently about £110bn a year.
The Conservative party claims that it has halved the deficit as a ratio to gross domestic product (GDP).
The national debt at the election will be £1.4 trillion, or £22,000 for every man, woman and child in the UK.
Planned tax giveaways include raising the personal allowance from its current £10,000 to £12,500 by 2020 and increasing the 40% threshold to £50,000.
The national debt in 2020 will probably be about £1.8 trillion which “spare cash” could be used to start repaying.