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 Feb 2014, 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 (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-

20-Feb-2014 2¼% Treasury Gilt 2023 £3,000 Million
13-Feb-2014 3¾% Treasury Gilt 2052 £1,912.9150 Million
11-Feb-2014 1/8% Index-linked Treasury Gilt 2024 £1,300 Million
04-Feb-2014 1¾% Treasury Gilt 2019 £4,177.4500 Million

When you add the cash raised:-

∑(£3,000 Million million + £1,912.9150 Million + £1,300 Million + £4,177.4500 Million ) = £10,390 Million

£10,390 Million = £10.39 Billion

On another way of looking at it, is in the 28 days in Feb, HM Government borrowed:-

£371 million each day  for 28 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, 2019, 2023, 2024 and 2052. All long term borrowings, we are mortgaging our futures, but at least we are “in it together….”