–Aug PSNB Stg15.302bn vs Stg13.548bn in Aug 09; median Stg12.6bn
–Aug PSNB ex financial interventions Stg15.91bn vs Stg14.08bn in Aug 09
–Aug PSNCR Stg5.804bn vs Stg10.317bn in Aug 09; median Stg8.8bn
LONDON (MNI) – Public Sector Net Borrowing rose to its highest
level for an August on record, as spending growth outstripped receipts,
figures from National Statistics Tuesday showed.
Excluding financial sector interventions the PSNB rose to Stg15.91
billion in August from Stg14.08 billion in August 2009. This was the
highest outturn for an August on record.
Including interventions PSNB rose to Stg15.302 billion from
Stg13.548 billion, also the highest for an August on record and above
the median forecast of Stg12.6 billion.
For the month of August there was an 11% rise in current spending
compared with a year earlier, while receipts growth was up 6.3%. Part of
the rise in spending was due to increased interest payments on
government borrowing.
While the August data will be met with disappointment, the figures
follow an improvement in borrowing in July and for the year to date
borrowing remains below last year’s levels. From April to August
borrowing excluding financial interventions stood at Stg58.1 billion,
down from Stg61.9 billion in the same period a year earlier.
The current budget excluding financial sector interventions posted
a deficit of Stg13.3 billion in August, up from a deficit of Stg11
billion in July 2009.
–London bureau: email: drobinson@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
