Public Sector Finances

Recently published statistics for public sector finances show that in March the public sector had a current budget deficit of £11.6 billion and a current budget deficit of £52.3 over the year 2008-9. This is a £47.0 billion higher deficit than in the same period of 2007/08, when there was a deficit of £5.3 billion. The monthly figures show a £7.7 billion higher deficit than in March 2008, when there was a deficit of £3.9 billion. Public sector net borrowing was £19.1 billion. This is £7.6 billion higher net borrowing than in March 2008, when net borrowing was £11.5 billion. Public sector net borrowing for the year 2008-9 was £90.0 billion. This was a £55.3 billion higher net borrowing than in the same period of 2007/08, when there was net borrowing of £34.6 billion;

Of the total, central government current receipts 2008-9 £492.1 and current spending £543.5bn (including depreciation). At the end of March public sector net investment was £37.7bn for 2008-9.

Public sector net debt (accruals based) was £743.6 billion or 50.9 per cent of gross domestic product (GDP). Public sector net debt excluding financial sector interventions was £609.1 billion or 41.7 per cent of GDP. The public sector net cash requirement for March was £28.4 billion, £16.9 billion higher than March last year. The public sector net cash requirement for the year to date was £59.9 billion. This amounts to a £38.3 billion higher net cash requirement compared with the same period of 2007/08 when there was a net cash requirement of £21.6 billion.

Contributions by the Government to banks account for most of the extra year-on-year debt.

(Office for National Statistics & Institute for Fiscal Studies)