He intends to reduce the deficit every year until 2014/15 when he will balance the budget. By that time we will be spending £63bn a year just on the interest of our national debt, making the total national debt peak at something like £1.5 trillion.
He ring-fenced four areas of spending: health, education, security and infrastructure. The rest was up for grabs. The MOD are losing 8% straight away but the army in Afghanistan is protected by a special contingency fund. The central civil service will shrink by a third, saving £6bn over 4 years and losing 490,000 members of staff. (Natural wastage is 8% so this will be less painful than you might think.)
The police are losing 4% a year, the FCO 6% a year, international development is actually going up, but China and Russia aren't getting aid anymore. The Home Office is losing 6% a year, the Ministry of Justice is losing 7% a year.
Another £7bn will be raised by clamping down even harder on tax evasion.
The BBC is to have the license fee frozen for 6 years and will assume the financial burden of the World Service and BBC Monitor which monitors the broadcast media around the world. This effectively gives them a budget cut of 16%.
The retirement age is to rise to 66 by 2020 and civil servants will have to pay more into their pension funds which are currently 2/3rds unfunded, but they keep their defined benefit pensions.
The MPs' pension scheme will be completely overhauled; stunned silence in the chamber when Osborne said this! (MPs currently get 1/40th of their final salary per year of service, index-linked. It's just about the most generous scheme in the public sector.)
A lot of benefits are to be cut although some tax credits are to go up. For example at the moment if an unemployed person under 25 claims housing allowance they will be paid enough to live in a room in a shared house. After 25 they get their own flat. The transition age is being raised to 35.
Equitable Life policy holders are getting bailed out at long last. Not the full amount but what they would have got if they had put their money in a different company. Cost to the tax-payer: £1.5bn.
Old people get to keep all the perks that were thought to be at risk: bus passes, free TV licenses (over 75s only), free prescriptions.
The shadow chancellor, Alan Johnson, who was only appointed a couple of weeks ago and immediately claimed he needed to get a copy of Economics for Dummies (or words to that effect) rose to reply but really had nothing to say. He warbled on about how the Tories hadn't been calling for cuts back in 2007.
All in all, this CSR is a big step in the right direction. And after the small print has been analysed it might turn into an even bigger step, the true implications of these things are rarely apparent on day one. Of course, the fiscal situation is only one of the country's major woes. There is also immigration, Europe, ethnic crime etc. But those are outside George Osborne's remit so he couldn't really be expected to comment on them.