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 Feb 2019 , 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 http://www.dmo.gov.uk/ to raise cash for HM Treasury:-
26-Feb-2019 0 1/8% Index-linked Treasury Gilt 2028 3 months £1,254.5710 Million
21-Feb-2019 1¾% Treasury Gilt 2057 £1,688.5000 Million
14-Feb-2019 1 5/8% Treasury Gilt 2028 £2,587.4970 Million
When you add the cash raised:-
(£1,254.5710 Million + £1,688.5000 Million + £2,587.4970 Million) = £5,530.568 Million
£5,530.568 Million = £5.530568 Billion
On another way of looking at it, is in the 28 days in Feb, HM Government borrowed:-
£197.5202857 Million each day for the 28 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 2028 and 2057. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”