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 June 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” 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
02-Jul-2019 0 5/8% Treasury Gilt 2025 £3,373.0970 Million
25-Jun-2019 1¾% Treasury Gilt 2049 £2,250.0000 Million
18-Jun-2019 0 7/8% Treasury Gilt 2029 £5,912.4990 Million
12-Jun-2019 0 1/8% Index-linked Treasury Gilt 2048 3 months £700.0000 Million
04-Jun-2019 1% Treasury Gilt 2024 £3,000.0000 Million
When you add the cash raised:-
(£3,373.0970 Million + £2,250.0000 Million + £5,912.4990 Million + £700.0000 Million + £3,000.0000 Million) = £15,235.596 Million
£15,235.596 Million = £15.235596 Billion
On another way of looking at it, is in the 30 days in June, HM Government borrowed:- £507.8532 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, 2025, 2029, 2048 and 2049. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”