Friday, July 20, 2012
Public finances - bad but not disastrous
Posted by David Smith at 11:00 AM
Category: Thoughts and responses

After two awful sets of numbers for the public finances, the June figures were not as bad. Yes there was an overshoot compared with a year ago - public sector net borrowing was 14.4 billion compared with 13.9 billion in June 2011 - but this was smaller than in April or May. So things might be coming back on track.

The current budget deficit was 13 billion, compared with 12.4 billion a year ago. So far this fiscal year underlying borrowing on this basis has been 41.6 billion, compared with 35.1 billion in the corresponding period of 2011-12. Public sector net debt is 1,038 billion, 66.1% of GDP.

According to the ONS: "In June 2012, central government accrued current receipts were 40.9 billion, which was 1.4 billion, or 3.6%, higher than in June 2011, when central government current receipts were 39.5 billion."

In June 2012, central government accrued current expenditure was 52.4 billion, which was 0.4 billion, or 0.8%, lower than June 2011, when central government current expenditure was 52.8 billion."

Interestingly, the ONS has revised down the 2011-12 borrowing outturn. It is now back down to 125.7 billion, just below the Office for Budget Responsibility's forecast of 126 billion, having been revised up to 128 billion a month ago. The figures are here.