Public sector borrowing requirement (PSBR) is the old name for the budget deficit in the United Kingdom. The budget deficit has been renamed to the public sector net cash requirement (PSNCR) to avoid confusion with net borrowing.
PSBR occurs when expenditures for the government activities in the public sector of the economy exceed the income. The resulting deficit is then financed by borrowing funds from the public, usually by the means of government gilts.
