June 2013 UK Government Borrowings….

The UK government, borrowed some “loose change” in June.

Their were four UK Gilt auctions in June, raising money for HM Treasury. The UK Debt Management Office is responsible for Gilt (UK Government Bonds) Issuance, that raises money for No 11 Downing Street.

[http://www.dmo.gov.uk/index.aspx?page=Gilts/Operations_Results]

[1]          04-Jun-2013 0 1/8% Index-linked Treasury Gilt 2024: Raised  £1,600,000 million
[2]          11-Jun-2013 2¼% Treasury Gilt 2023: Raised  £3,750.0000 million
[3]          13-Jun-2013 4¼% Treasury Stock 2032: Raised £2,250.0000 million
[4]          20-Jun-2013 1¼% Treasury Gilt 2018: Raised  £4,750.0000 million

Look at the maturities, 2018, 2023, 2024 and 2032. UK is borrowing with major debt repayments years away. We are mortgaging our futures.

In June, HM Government borrowed 

∑(£1,600,000 million + £3,750.0000 million + £2,250.0000 million + £4,750.0000 million)

=(£12,350,000,000)= £12,350 million = £12.350 Billion.

Why ?

Well clearly to meet all outgoings for HM government, (The public sector) there was not enough revenue from taxation, to bridge that gap, HM government borrowed via these 4 Gilt auctions, £12,350 Million (or £411 Million a day).

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