Labour will clear £86bn deficit by 2020, Ed Balls says George Osborne, the Chancellor, has committed by 2017-18 to eliminating the current account deficit, the shortfall between government tax revenue and spending on services. Labour is carrying out a "zero-based review of public spending" to root out waste and inefficiency "by examining every pound spent by government from the bottom up." The party will hit its target by measures including removing the winter fuel allowance from pensioners who pay the higher rate of tax. It will also use proceeds from the sales of government stakes in Lloyds TSB and the Royal Bank of Scotland. Mr Balls's commitment will apply to current government spending and not capital spending, potentially allowing a Labour administration to borrow more. Mr Balls will tell the Fabian Society: "The next Labour government will balance the books and deliver a surplus on the current budget and falling national debt in the next parliament." He will say that "where this government has failed, we will finish the job. We will abolish the discredited idea of rolling five-year targets and legislate for our tough fiscal rules within 12 months of the general election. He will add: "We will get the current budget into surplus as soon as possible in the next Parliament. How fast we can go will depend on the state of the economy and public finances we inherit. The commitment will allow the Conservatives to stoke fears ahead of the election that Labour wants to increase taxes and spending. Mr Balls will also say that he has asked the Office for Budget Responsibility to "audit the costing of every individual spending and tax measure in Labour's manifesto." He called on Mr Osborne to agree to a similar commitment "to restore public trust in politics and improve the nature of the political debate." Mr Balls will say: "Without fiscal discipline and a credible commitment to eliminate the deficit, we cannot achieve the stability we need."