LONDON (MNI) – The Office for Budget Responsibility said that it
had been expecting stronger tax receipts growth in the second half of
this fiscal year, but the outlook was now dependent on events in the
world economy.
In its analysis of Friday’s September public finance data, the OBR
offers no clear opinion on whether the UK public finances are on track
to meet its forecasts, and instead highlights the uncertainty
surrounding the fiscal outlook.
In its March forecast, the OBR predicted stronger revenue growth in
the second half of 2011-12 fiscal year because of changes to oil and gas
taxation and the impact of the 50% top income tax rate.
“The outlook for receipts over the rest of the year is very
dependent on developments in the wider economy. Our forecast of this
will be updated in our upcoming Economic and Fiscal Outlook,” the OBR
said in a note.
Its new forecasts will be published on Nov 29.
The September data showed public sector net borrowing excluding
financial sector interventions for the first half of the 2011-12 fiscal
year (the UK fiscal year runs April through March) was Stg7.5 billion
less than in the first half of the 2010-11 fiscal year.
The OBR notes that to meet its March forecast, borrowing would have
to be Stg7.8 billion lower in the second half of this fiscal year than
in the second half of 2010-11.
— London newsroom: 00 44 20 7862 7491; drobinson@marketnews.com
[TOPICS: MFBBU$,M$B$$$,MABDS$]
