HM Government Borrowings: May 2021

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.
Now we are in a Covid 19 world. UK’s HM Government needs to fund many new demands. []

Another deficit month, thus to bridge the gap, needs to borrow on the bond market In April 2021 , 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” 7 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

19-May-2021 0 5/8% Treasury Gilt 2035 £3,093.7490 Million
18-May-2021 0 1/8% Treasury Gilt 2024 £4,062.4950 Million
18-May-2021 1¼ % Treasury Gilt 2041 £2,812.4990 Million
11-May-2021 0 3/8% Treasury Gilt 2026 £3,283.7500 Million
11-May-2021 0½% Treasury Gilt 2061 £1,500.0000 Million
05-May-2021 0¼% Treasury Gilt 2031 £2,750.0000 Million
05-May-2021 0 7/8% Treasury Gilt 2046 £2,000.0000 Million


3,093.7490 Million + 4,062.4950 Million + 2,812.4990 Million + 3,283.7500 Million + 1,500.0000 Million + 2,750.0000 Million + 2,000.0000 Million = £19,502.493 Million

Another way of looking at it, is in the 31 days in May 2021, HM Government borrowed:£629.11267741935483870967741935484 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 from 2026 through to 2061. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together…

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