UK DATA: Mar PSNB-X Stg18.174bn vs Stg17.951bn in Mar 2011
–2011/2012 PSNB-X Stg125.974bn vs Stg136.841bn in 2010/11
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PSNB-X was higher than expected in March but down revisions to
previous data mean for 2011/12 it was in line with the OBR’s Stg126 bn
forecast. An undershoot of over Stg3.5 billion on the CGNCR also means
the Gilt remit for 2012/13 will likely be revised downwards. The data
revealed that government departmental spending fell for the first time
since 1955 in the latest financial year, clearly showing that the
government’s plans to cut back on spending are having a real impact.
National Statistics said that the wind up of the Bank of England’s
Special Liquidity Scheme had led to a drop in corporation tax receipts
in March of Stg0.7 billion. In April, it is estimated that Stg2.3
billion will be transferred from the BOE to the Treasury which will
improve PSNB-X by the same amount in April.