empty
 
 

2022.05.2407:19:00UTC+00UK Budget Deficit Narrows In April

The UK budget deficit narrowed from last year in April, but the shortfall was the fourth-highest on record, the Office for National Statistics said on Tuesday.

Public sector net borrowing, excluding banks, decreased by GBP 5.6 billion to GBP 18.6 billion in April. Borrowing remained below the estimate of the Office for Budget Responsibility by GBP 0.5 billion.

Nonetheless, this was the fourth-biggest shortfall since records began in 1993 and also exceeded the economists' forecast of GBP 17.8 billion.

Data showed that central government receipts were up 16.5 percent, while expenditure dropped by 4.5 percent.

Public sector net debt excluding public sector banks totaled GBP 2,347.7 billion at the end of April, or around 95.7 percent of GDP.

In the financial year ending March, public sector borrowed GBP 144.6 billion, about GBP 16.8 billion more than the GBP 127.8 billion forecast by the OBR in the economic forecast published in March.

Data suggests that after just one month of the 2022/23 fiscal year the Chancellor is on track to undershoot the OBR's full-year borrowing forecast of GBP 99 billion, Paul Dales, an economist at Capital Economics, said.

"That said, we suspect that the effects on the public finances of higher inflation, higher interest rates and weaker GDP growth will prevent a big undershoot this year and may in fact erode some of the ?27bn (1.0% of GDP) of headroom the Chancellor has against his main fiscal mandate," Dales added.

As such, the economist said the upcoming support package for households will probably be mostly funded by raising taxes elsewhere and will be targeted towards those households that need it most.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback