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 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” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-
26-Apr-2017 0 1/8% Index-linked Treasury Gilt 2046 £857.7930 Million
20-Apr-2017 0½% Treasury Gilt 2022 £3,162.4970 Million
12-Apr-2017 2½% Treasury Gilt 2065 £1,724.9990 Million
04-Apr-2017 1¼% Treasury Gilt 2027 £2,867.7390 Million
When you add the cash raised:-

∑(£857.7930 Million + £3,162.4970 Million + £1,724.9990 Million + £2,867.7390 Million =  £8,613.028  Million

£8,613.028  Million  = £8.613028  Billion

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

£287 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 2022, 2027 2046 and 2065. All long term borrowings, we are mortgaging our futures, but at least “We are in it together…”