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 post Covid 19 world. UK’s HM Government needs to fund many new demands.
https://dmo.gov.uk/data/pdfdatareport?reportCode=D2.1PROF7
Another deficit month, thus to bridge the gap, needs to borrow on the bond market in March 2024, 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:-
26-Mar-2024 4½% Treasury Gilt 2028 £3,000.0000 Million
19-Mar-2024 4¾% Treasury Gilt 2043 £2,500.0000 Million
12-Mar-2024 4 5/8% Treasury Gilt 2034 £4,687.4990 Million
£3,000.0000 Million + £2,500.0000 Million + £4,687.4990 Million = £10,187.499 Million
£10,187.499 Million = £10.187499 Billion
On another way of looking at it, is in the 31 days in March 2024, HM Government borrowed:- £328.629 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 bonds maturing from 2028 to 2043. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“