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 2018 , 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:-

27-Mar-2018 0 1/8% Index-Linked Treasury Gilt 2056 3 months 675.2400 Million
15-Mar-2018 1 5/8% Treasury Gilt 2028 2,864.7310 Million
06-Mar-2018 1½% Treasury Gilt 2047 2,250.0000 Million
01-Mar-2018 0¾% Treasury Gilt 2023 2,815.6600 Million

When you add the cash raised:-

∑(675.2400 Million + 2,864.7310 Million + 2,250.0000 Million + 2,815.6600 Million) =  £8605.631 Million

£8605.631 Million = £8.605631 Billion

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

£277 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 2023, 2028, 2047 and 2056. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”