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. [www.dmo.gov.uk]
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In April 2022, 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:-
20-Apr-2022 1 1/8% Treasury Gilt 2039 £2,499.9980 Million
12-Apr-2022 1% Treasury Gilt 2032 £3,124.9980 Million
05-Apr-2022 0 3/8% Treasury Gilt 2026 £3,250.0000 Million
£2,499.9980 Million + £3,124.9980 Million + £3,250.0000 Million = £8,874.996 Million
£8,874.996 Million = £8.874996 Billion
On another way of looking at it, is in the 30 days in April 2022, HM Government borrowed:- £295.8332 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 in 2039. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together……”