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 May 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-

27-May-2015 1/8% Index-linked Treasury Gilt 2058 £745.3830 Million
21-May-2015 4¾% Treasury Gilt 2030 £1,750.00 Million
14-May-2015 2% Treasury Gilt 2020 £4,098.8140 Million

When you add the cash raised:-

∑(£745.3830 Million + £1,750.00 Milion + £4,098.8140 Million) =  £6,594.20 Million

£6,594.20 Million = £6.594 Billion

On another way of looking at it, is in the 31 days in May, HM Government borrowed:-

£212 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, 2030 & 2058. All long term borrowings, we are mortgaging our futures, but at least “we are in it together…”