–May PSNB-X Stg17.415bn vs Stg18.48n in May 10
–May PSNCR Stg11.104bn vs Stg2.369bn in May 10
–May Current Budget -Stg15.346bn vs -Stg16.492bn in May 10
LONDON (MNI) – UK Public Sector Net Borrowing for the first two
months of the current financial year rose to its highest level since at
least 1993/94, figures released by National Statistics Tuesday showed.
Public sector net borrowing excluding financial interventions
(PSNB-X) came in at Stg17.415 billion in May, down from Stg18.48 billion
in the same month a year ago, but a little higher than the median
forecast of Stg15 billion.
The current budget deficit excluding financial interventions eased
slightly to Stg15.346 billion from Stg16.492 billion in May 2010.
While news that the deficit in May was lower than a year earlier
will be welcomed, net borrowing for the first two months of the 2011/12
financial year stood at Stg27.4 billion, above the Stg25.9 billion at
the same point in 2010/11, the worst outturn since at least 1993/94.
Last year’s Apr-May figure would have been higher had it not been for
the one-off impact of the payroll tax which boosted revenue.
Moreover, following a downward revision last month, net borrowing
in 2011/12 was revised back up again by Stg3.8 billion to Stg143.189
billion. National Statistics said that it was normal for fairly large
revisions to take place at this time of year in line with the next set
of quarterly national accounts.
Spending growth on an accrued basis rose 2.2% on the year while
receipts growth was up 8.2%.
The Public Sector Net Cash Requirement stood at Stg11.104 billion
in May up from Stg2.369 billion in May last year. National Statistics
said this figure was skewed by missing bank data and was likely to be
revised heavily.
The central government net cash requirement fell to Stg10.812
billion from Stg18.017 billion.
–London bureau: 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]