Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.
In January 2015, the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement.
There were “only” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-
06-Jan-2015 2¾% Treasury Gilt 2024 £3,024.940 million
07-Jan-2015 0 1/8% Index-linked Treasury Gilt 2044 £1,040.780 million
15-Jan-2015 4½% Treasury Gilt 2034 £1,889.840 million
20-Jan-2015 2% Treasury Gilt 2020 £3,750.000 million
When you add the cash raised:-
∑(£3,024.940 million + £1,040.780 million + £1,889.840 million + £3,750.000 million) = £9,705.56 Million
£9,705.56 Million = £9,705.56 Billion
On another way of looking at it, is in the 31 days in Jan 2015, HM Government borrowed:-
£313 million each day for the 31 days. We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature 2020, 2024 2034 and 2044. All long term borrowings, we are mortgaging our futures, but at least “we are in it together….”