UK Debt: June 2013 Borrowings

The UK Goverment borrows money on the open market, the agency responsible for raising money for HM Government is The UK Debt Management Office.

[http://www.dmo.gov.uk]

The DMO can issue Gilts or Treasury Bills to raise cash. These are effectively “I Owe You’s” that mature in the future.

Looking at May 2013, we had 4 Gilt auctions:

Wednesday 8-May-2013: 0 1/8% Index-linked Treasury Gilt 2044: Raised: £1,335.4556 Million
Tuesday 14-May-2013: 1¼% Treasury Gilt 2018:  Raised: £5,297.7305  Million
Thursday 16-May-2013: 3¼% Treasury Gilt 2044: Raised: £2,727.0145 Million
Wednesday 29-May-2013: 4¾% Treasury Stock 2015: Raised: £1,922.4556 Million

This equates to £11.282 Billion for May 2013 on issuing gilts only

Or to put it simply, The UK Goverment borrowed (using Gilts) £363 million a day to bridge the gap of its income (tax collection) and government spending.

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