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 March 2017, 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” 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

02-Mar-2017 0½% Treasury Gilt 2022 £2,500.0000 Million
09-Mar-2017 0 1/8% Index-linked Treasury Gilt 2036 £833.7370 Million
14-Mar-2017 1¼% Treasury Gilt 2027 £2,557.9170 Million
22-Mar-2017 1½% Treasury Gilt 2047 £2,299.9970 Million
28-Mar-2017 0½% Treasury Gilt 2022 £2,874.9990 Million

When you add the cash raised:-

∑(£2,500.0000 Million + £833.7370  Million + £2,557.9170 Million + £2,299.9970 Million + £2,874.9990 Million =  £11,066.65  Million

£11,066.65  Million = £11.06665 Billion

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

£356 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 2022, 2027 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We are in it together…”