London, England (CNN) -- The British government announced deep budget cuts Wednesday, as it tries to fight massive deficits.
It will include "ruthless privatization" and will leave "no stone unturned in our search for waste," Chancellor George Osborne told lawmakers in the House of Commons.
But it is also guided by the principle of "fairness," he said, saying, "those with the broadest shoulders will bear the greatest burden".
The long-awaited cuts follow a "comprehensive spending review" by the new British government, which came to power in May.
Paying interest on government debt currently costs 44 billion pounds ($69 billion) a year, the Treasury said in outlining the spending review -- more than defense, policing, housing or transportation.
The government forecasts public spending peaking this year, then falling to 2003-04 levels by 2015-16. That will still not quite balance the budget, it predicts, but will come close to doing so.
It announced deep cuts to the defense budget on Tuesday, with the armed forces losing 10 percent of uniformed personnel in the next five years.
But not all areas are facing the axe.
The government promises to continue increasing spending for the National Health Service every year, and to spend 0.7 percent of GDP on overseas development aid by 2013.
CNN
