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 Feb 2020 , 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
04-Feb-2020 0 1/8% Index-linked Treasury Gilt 2036 3 months £800.0000 Million
20-Feb-2020 1½% Treasury Gilt 2026 £3,269.8750 Million
25-Feb-2020 0 7/8% Treasury Gilt 2029 £3,441.9750 Million
When you add the cash raised:-
£800.0000 Million + £3,269.8750 Million + £3,441.9750 Million = £7,511.85 Million
£7,511.85 Million = £7.51185 Billion
On another way of looking at it, is in the 29 days in Feb 2020, HM Government borrowed:- £259.0293103448276 Million each day for the 29 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 2026, 2029 and 2036. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”