The difference between the government’s expenditure and revenues is known as the public sector
net cash requirement (PSNCR). Typically the UK Government has a borrowing requirement, as there
is usually a deficit between expenditure and receipts.

1) if the economy is in recession, tax revenues will be weak and spending on unemployment
will rise, so that the PSNCR is likely to grow;
2) if the economy is expanding, tax revenues will rise and spending on unemployment will fall
as more people find jobs, reducing the PSNCR deficit.