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 June 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-

12-Jun-2014 0 1/8% Index-linked Treasury Gilt 2019  £1,469.760 Million
10-Jun-2014 2¾% Treasury Gilt 2024 £3,250 Million
03-Jun-2014 1¾% Treasury Gilt 2019  £4,028.420 Million

When you add the cash raised:-

∑(£1,469.760 Million  + £3,250 Million + £4,028.420 Million) = £8,748.180 Million

£8,748.180 Million = £8.748 Billion

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

£291 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, 2019, and 2024. All long term borrowings, we are mortgaging our futures, but at least we are “in it together…..”