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 2016, 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:-

20-Apr-2016 0 1/8% Index-linked Treasury Gilt 2026 £1,424.8030 Million
13-Apr-2016 3½% Treasury Gilt 2045 £2,012.4980 Million
07-Apr-2016 1½% Treasury Gilt 2026 £2,874.9890 Million
05-Apr-2016 1½% Treasury Gilt 2021 £3,162.4990 Million

When you add the cash raised:-

∑(£1,424.8030 Million + £2,012.4980 Million + £2,874.9890  Million + £3,162.4990 Million) =  £9,474.79 Million

£9,474.79 Million = £9.474 Billion

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

£315 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 2021, 2026 and 2045. All long term borrowings, we are mortgaging our futures, but at least “We are in it together….”