UK HM Government March 2014 borrowings…..

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 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 :-

27-Mar-2014 0¼% Index-linked Treasury Gilt 2052 £900 Million
13-Mar-2014 0 1/8% Index-linked Treasury Gilt 2019 £1,592.712 Million
11-Mar-2014 2¾% Treasury Gilt 2024 £3,282.766 Million
04-Mar-2014 1¾% Treasury Gilt 2019 £4,303.205 Million

When you add the cash raised:-

∑(£900 Million + £1,592.712 Million + £3,282.766 Million + £4,303.205 Million) = £10,078.683 Million

£10,078.683 Million= £10.078 Billion

On another way of looking at it, is in the 31 days in March, HM Government borrowed:-

£325 million each day  for 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, 2052, 2024 and 2019. All long term borrowings, we are mortgaging our futures, but at least we are “in it together….”