Financial News: UK Budget Deficit Widens More Than Estimate

UK Budget Deficit Widens More Than Estimate

(RTTNews) - The UK budget deficit widened more than officially estimated in July as spending growth outpaced receipts despite strong rise in revenues from income tax, data from the Office for National Statistics showed Friday.

Public sector net borrowing increased by GBP 0.7 billion to GBP 1.8 billion in July. This was GBP 2.3 billion above the forecast of Office for Budget Responsibility.

Self assessed income tax receipts increased by GBP 1.7 billion to GBP 17.1 billion in July, the highest in any July since monthly records began in 1999. Meanwhile, spending on public services, benefits and other costs was higher than a year earlier.

Although debt interest payable at GBP 7.7 billion was lower than in recent months, it remained slightly above the last year level.

In the financial year to July, borrowing declined GBP 6.0 billion to GBP 56.7 billion. This was GBP 2.3 billion above the OBR forecast.

At the end of July, public sector net debt was GBP 2,984.9 billion, which was GBP 95.9 billion more than a year earlier. Debt was equivalent to 94.1 percent of GDP.

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