Chancellor George Osborne delivered his budget for the 2012/2013 fiscal year to parliament on Wednesday.

Following are highlights from his statement.

DEFICIT REDUCTION

The deficit is falling and is forecast to reach 7.6% next year.

Borrowing this year is set to come in at 126 billion pounds, 1 billion pounds lower than I forecast in the autumn. And over 30 billion pounds a year lower than its peak the year before we came to office.

Borrowing will then fall to 120 billion pounds next year, if you exclude the transfer of Royal Mail pension assets. It will then fall to 98 billion pounds in 2013-14; then 75 billion; then 52 billion; reaching 21 billion by 2016-17.

So in total, borrowing is 11 billion pounds less than last forecast in the Autumn.

ECONOMIC GROWTH

The OBR's overall assessment of the outlook and risks for the British economy is broadly unchanged since last November's report.

The OBR expect the British economy to avoid a technical recession with positive growth in the first quarter of this year.

They say that the British economy has carried a little more momentum into the new year than previously anticipated.

Indeed, the Office for Budget Responsibility is slightly revising up in their growth forecast for the UK this year to 0.8%. They then forecast 2% next year; 2.7% in 2014; And 3% in both 2015 and 2016.

(Reporting by UK bureau)