HM Government Borrowings: May 2017

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 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office ( to raise cash for HM Treasury:-

23-May-2017 0 1/8% Index-linked Treasury Gilt 2036 £882.3000 Million
18-May-2017 1¾% Treasury Gilt 2019 £2,962.1500 Million
04-May-2017 1¾% Treasury Gilt 2037 £2,293.7880 Million

When you add the cash raised:-

∑(£882.3000 Million + £2,962.1500 Million + £2,293.7880 Million) =  £6,138.238 Million

£6,138.238 Million  = £6.138238  Billion

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

£198 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 2019, 20236and 2037. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….




Leave a Reply

Your email address will not be published. Required fields are marked *