Another month, same old story, HM Government, spends more money than it receives via taxes. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.

In August 2013, 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 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-Aug-2013 0 1/8% Index-linked Treasury Gilt 2019  £1,794,585,000
15-Aug-2013 4½% Treasury Gilt 2034 £2,250,000,000
08-Aug-2013 0¾% Index-linked Treasury Gilt 2034 £1,408,087,000
06-Aug-2013 1¼% Treasury Gilt 2018 £4,931,465,000

When you add the cash raised:-

∑(£1,794,585,000 + £2,250,000,000  + £1,408,087,000 + £4,931,465,000) = £10,384,137,000

£10,384,137,000  = £10,384 Million = £10.384 Billion

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

£346 million each day for 30 days. We are fortunate, the global banking and financial markets still has the confidence in HM Government to buy the Gilts. The budget deficit keeps rising. What is also alarming, is the dates these bond mature, 2018, 2019 and 2034. All long term borrowings, we are mortgaging our futures.