Another month, guess what, it is the same old story, HM Government, spends more money than it receives via taxes. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.
In September 2013, 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 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-
19-Sep-2013 1¼% Treasury Gilt 2018 £5,083,730,000
12-Sep-2013 2¼% Treasury Gilt 2023 £4,124,604,000
10-Sep-2013 3¼% Treasury Gilt 2044 £3,017,840,000
03-Sep-2013 0 1/8% Index-linked Treasury Gilt 2024 £1,627,140,000
When you add the cash raised:-
∑(£5,083,730,000 + £4,124,604,000 + £3,017,840,000 + £1,627,140,000) = £13,853,310,000
£13,853,310,000 = £13,853,310 Million = £13.853 Billion
On another way of looking at it, is in the 30 days in August HM Government borrowed:-
£461 million each day for 30 days. We are fortunate, the global banking and financial markets still has the confidence in HM Government to buy the Gilts. The budget deficit keeps rising. What is also alarming, is the dates these bond mature, 2018, 2023, 2033 and 2024. All long term borrowings, we are mortgaging our futures.