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 2020 , 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” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
19-Mar-2020 0 5/8% Treasury Gilt 2025 £3,250.0000 Million
17-Mar-2020 1¾% Treasury Gilt 2049 £2,299.9990 Million
10-Mar-2020 4¾% Treasury Gilt 2030 £2,587.4880 Million
05-Mar-2020 0 1/8% Index-linked Treasury Gilt 2028 3 months £1,244.2380 Million
04-Mar-2020 0 5/8% Treasury Gilt 2025 £3,500.0000 Million
When you add the cash raised:-
£3,250.0000 Million + £2,299.9990 Million+ £2,587.4880 Million + £1,244.2380 Million + £3,500.0000 Million = £12,764.406 Million
£12,881.725 Million = £12.881725 Billion
On another way of looking at it, is in the 31 days in March 2020, HM Government borrowed:- £415.5395161290323 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 2025, 2028, 2030 and 2049. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”