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 March 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 :-
19-Mar-2015 2% Treasury Gilt 2025 £3,024.8740 million
12-Mar-2015 1 1/8% Index-linked Treasury Gilt 2037 £933.2100 million
10-Mar-2015 3½% Treasury Gilt 2068 £1,649.9850 million
03-Mar-2015 2% Treasury Gilt 2020 £3,500.0000 million
When you add the cash raised:-
∑(£3,024.8740 million + £933.2100 million + £1,649.9850 million + £3,500.0000 million) = £9,108.07 Million.
£9,108.07 Million = £9.108 Billion
On another way of looking at it, is in the 31 days in March, HM Government borrowed:-
£293 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, 2034 and 2045. All long term borrowings, we are mortgaging our futures, but at least “we are in it together…”