HM Government April 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 April 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 to raise cash for HM Treasury:-

16-Apr-2019 1¾% Treasury Gilt 2037 £2,250.00 Million

09-Apr-2019 1 5/8% Treasury Gilt 2028 £3,135.10 Million

02-Apr-2019 1% Treasury Gilt 2024 £3,450.00 Million

When you add the cash raised:-

(£2,250.00 Million + £3,135.10 Million + £3,450.00 Million) = £8835.1 Million

£8835.1 Million = £8.8351 Billion

On another way of looking at it, is in the 30 days in April, HM Government borrowed:- £294.5033333333333 Million each day for the 30 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, 2028 and 2037. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

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