Financial News: UK Budget Deficit Worse Than Expected

UK Budget Deficit Worse Than Expected

03/21/2024 - 06:04:00 (RTTNews)

(RTTNews) - The UK budget deficit was wider than economists' expectations in February despite an increase in receipts, official data revealed on Thursday.

Public sector net borrowing, or PSNB, excluding public sector banks decreased by GBP 3.4 billion from the previous year to GBP 8.4 billion in February, the Office for National Statistics said. However, borrowing was well above economists' forecast of GBP 5.95 billion.

For the financial year to February, borrowing totaled GBP 106.8 billion, which was GBP 4.6 billion less than in the same eleven month period a year ago.

The Office for Budget Responsibility projected borrowing to settle at GBP 114.1 billion for the financial year ending March 2024 as a whole.

Capital Economics' economist Ruth Gregory said this means that borrowing in March will have to come in at just GBP 7.2 billion to achieve the forecast but it seems unlikely.

However, the economist said disappointing borrowing data probably will not stop the Chancellor from unveiling more tax cuts.

At GBP 86.4 billion, the central government's receipts were GBP 7.2 billion more than in the previous year. At the same time, expenditure rose GBP 2.9 billion to GBP 89.6 billion, data showed.

The interest payable on central government debt was GBP 6.8 billion, the lowest February interest payable since 2022.

At the end of February, public sector net debt excluding banks increased GBP 157.4 billion to GBP 2,659.4 billion.

The government debt was estimated at 97.1 percent of GDP that was around 2.3 percentage points more than at the end of February 2023.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

German Companies' Price Expectations Rise Slightly - Ifo (01 hr(s), 02 min(s), 44 sec(s) ago)
(RTTNews) - More companies in Germany plan to raise prices in April and inflation is likely to rem ...Full Story»

Finland Consumers More Gloomy In April, Business Morale Weakens (01 hr(s), 14 min(s), 44 sec(s) ago)
(RTTNews) - Finland's consumers expressed a more pessimistic approach in April, survey figures ...Full Story»

Spain Inflation Rises To 3.3%, Less Than Forecast (02 hr(s), 11 min(s), 44 sec(s) ago)
(RTTNews) - Spain's consumer price inflation rose less than expected in April to the highest l ...Full Story»

Swedish Economy Contracts Further (03 hr(s), 03 min(s), 44 sec(s) ago)
(RTTNews) - Sweden's economy shrank for the fourth consecutive quarter in the three months e ...Full Story»

Dutch Producers Less Pessimistic In April (04 hr(s), 04 min(s), 44 sec(s) ago)
(RTTNews) - Confidence among manufacturers in the Netherlands remained less negative in April, dat ...Full Story»

European Economic News Preview: Germany Inflation Data Due (06 hr(s), 34 min(s), 44 sec(s) ago)
(RTTNews) - Flash inflation data from Germany and economic confidence survey results from the euro ...Full Story»

Singapore Unemployment Data Due On Monday (31 min(s), 16 sec(s) ago)
(RTTNews) - Singapore will on Monday release Q1 figures for unemployment, highlighting a light day ...Full Story»

Eurozone Consumers' 12-Month Inflation Expectations Lowest Since Dec 2021 - ECB (42 min(s), 16 sec(s) ago)
(RTTNews) - Euro area consumers' inflation expectations for the next 12 months hit their lowes ...Full Story»