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 April 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 :-

29-Apr-2015 2% Treasury Gilt 2025  £3,000 Million
21-Apr-2015  3½% Treasury Gilt 2045  £1,924.980 Million
16-Apr-2015 0 5/8% Index-linked Treasury Gilt 2040  £1,283.940 Million
08-Apr-2015 2% Treasury Gilt 2020  £4,010 Million

When you add the cash raised:-

∑(£3,000 Million + £1,924.980 Million + £1,283.940 Million + £4,010 Million) =  £10,218.920 Million.

£10,218.920 Million. = £10.2 Billion

On another way of looking at it, is in the 30 days in April, HM Government borrowed:-

£340 million each day for the 30 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, 2025, 2040 and 2045. All long term borrowings, we are mortgaging our futures, but at least “we are in it together…”