Thanks to his cuts, the government's net borrowing next year should fall below DM50 billion for the first time since German unity in 1990.
But since September 2008 there have been two definitions of public sector net borrowing and public sector net debt, depending on whether the "temporary effects of financial sector interventions" are included.
And Monday's figures showing a slight year-on-year increase in public sector net borrowing have fuelled fears that the UK could lose its coveted AAA credit rating, thereby potentially increasing the government's cost of borrowing.
His aim is to keep up the pressure so that, by the 2006 election, net borrowing will have been cut to zero and a start can be made on reducing the mountain of accumulated debt, now about DM1, 500 billion.
"It's far too early to be drawing definitive conclusions this early in the financial year, but it's a good start: net borrowing is lower than in April last year, the current budget position is better, receipts growth is very buoyant and spending is subdued, " said Investec economist Philip Shaw.
Net consumer borrowing relative to personal disposable income has fallen 4% in the year through March, the second-largest drop in 55 years.
However, points out John Lonski, Moody's chief economist, net new borrowing by American firms has fallen sharply, as have repurchases of shares.
Mortgage lending is still profitable, yet in June it was 3% lower than a year earlier, while net consumer borrowing fell for a second month.
The problem is not so much the budget deficit (though Greece was certainly profligate) as the net foreign borrowing by all actors, public and private (say to finance a trade deficit).
Now it may also be true that the financial markets would go into a tailspin if Congress bars the U.S. from net new borrowing a response that could sharply drive up interest rates.
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Overall, net government borrowing is on course to be about a third lower as a share of GDP than when the coalition came in: it's forecast to be 6.9% of GDP in 2012-13 (excluding the temporary effect of transferring the Royal Mail pension scheme), compared with 10.1% of GDP in 2010-11.
The finance ministers of Norway and Saudi Arabia have no cause to worry about their borrowing costs because they are net creditors.
The fact is, U.S. Treasury borrowing has taken some 110% of net U.S. private savings (NPS) these past twelve months.
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You are now hearing respected city economists such as Michael Saunders, who supported Mr Osborne in 2010, suggest that a modest increase in capital spending might be a net positive for the economy, even if it did raise borrowing.
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