Current Budget Deficit Higher Than Last Year

The public sector finances fiscal indicators published by the Office for National Statistics and the Treasury tell us that the public sector current budget showed a deficit £7.0 bn, £6.3 bn higher than April 2008. Public sector net borrowing was £8.5 bn, £6.6 bn higher than last year and the public sector net cash requirement, the deficit plus the interest paid to those from whom the government borrows, was £5.2 bn, £8.0 bn higher than April 2008, when there was a repayment of £2.9 bn. The public sector net debt stood at £754bn or 53.2% of GDP compared to £618.7 bn or 42.9% of GDP last April. Public sector net debt, excluding financial sector interventions for Q1 2009 was £609 bn or 42.9% GDP.

The Institute for Fiscal Studies said that the Government borrowed about £3 billion less in 2008-9 than they thought in the Budget last month. This was due they said to current spending being lower and taxes higher than thought at the time of the Budget