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 April 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 :-

29-Apr-2014 2¾% Treasury Gilt 2024 £3,500 million
24-Apr-2014 1¾% Treasury Gilt 2019 £4,000 million
08-Apr-2014 0¾% Index-linked Treasury Gilt £1,300 million
02-Apr-2014 3¼% Treasury Gilt 2044 £2,715.764 million

When you add the cash raised:-

∑(£3,500 million + £4,000 million + £1,300 million + £2,715.764 million) = £11,516 Million

£11,516 Million = £11.516 Billion

On another way of looking at it, is in the 30 days in April, HM Government borrowed:-

£383 million each day  for 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, 2024, 2019 and 2044. All long term borrowings, we are mortgaging our futures, but at least we are “in it together…”