HM Government March 2019 Borrowings

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 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-Mar-2019 0 1/8% Index-linked Treasury Gilt 2048 3 months £325.0000 Million
14-Mar-2019 1¾% Treasury Gilt 2049 1,724.9980
06-Mar-2019 1% Treasury Gilt 2024 3,414.7490

When you add the cash raised:-

(£325.0000 Million + £1,724.9980 Million + 3,414.7490 Million) =  £5,464.747 Million

£5,464.747 Million = £5.464747  Billion

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

£176.2821612903226 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 2024, 2047 and 2048. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

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