The correct answer is (b), 2003-04.
Public sector savings is the difference between the total revenue of the government and its total expenditure. It is a measure of the government’s ability to finance its own activities without borrowing money.
Public sector savings were negative from 1998-99 to 2002-03. This means that the government was spending more money than it was taking in. This was due to a number of factors, including the Asian financial crisis, the dot-com bubble, and the Iraq War.
Public sector savings turned positive in 2003-04. This was due to a number of factors, including the economic recovery, tax cuts, and spending cuts.
The other options are incorrect. Option (a), 2002-03, is incorrect because public sector savings were still negative in that year. Option (c), 2004-05, is incorrect because public sector savings were only slightly positive in that year. Option (d), 2005-06, is incorrect because public sector savings were already positive in that year.