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.
Now we are in a post Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]
Another deficit month, thus to bridge the gap, needs to borrow on the bond market in March 2023, 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” 7 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
22-Mar-2023 4 1/8% Treasury Gilt 2027 £3,500.0000 Million
21-Mar-2023 3¾% Treasury Gilt 2053 £2,464.9990 Million
14-Mar-2023 3¼% Treasury Gilt 2033 £3,749.9990 Million
08-Mar-2023 0½% Treasury Gilt 2061 £2,500.0000 Million
07-Mar-2023 3½% Treasury Gilt 2025 £4,500.0000 Million
02-Mar-2023 0 1/8% Index-linked Treasury Gilt 2051 3 months £736.8250 Million
01-Mar-2023 3¾% Treasury Gilt 2038 £3,124.9990 Million
£3,500.0000 Million + £2,464.9990 Million + £3,749.9990 Million + £2,500.0000 Million + £4,500.0000 Million + £736.8250 Million + £3,124.9990 Million = £20.576,822 Million
£20,576.822 Million = £20.576,822 Billion
On another way of looking at it, is in the 31 days in March 2023, HM Government borrowed:- £663.76845161290322580645161290323 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 bonds maturing from 2027 to 2061. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“