Friday, June 21, 2013
Better public borrowing figures
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

The numbers for public borrowing are looking better, though there is a long way to go. Borrowing for 2012-13 is now put at 118.8 billion, 2.1 billion lower than predicted by the Office for Budget Responsibility at the time of the March budget. Borrowing for 2011-12 has been revised down even more, by 2.5 billion to 118.5 billion, and is now quite close to the original OBR forecast of 116 billion made in June 2010.

The big picture is, of course, that borrowing has stalled at a slightly lower level than before, though that could change in time. 2012-13 borrowing may, on previous patterns, be revised down. The official figure for 2011-12 borrowing has been as high as 128 billion (in the June release last year).

The news for May is difficult to interpret because of special factors, notably a receipt by the Treasury of a transfer from the Bank of englanbd's asset purchase facility, and the proceeds of a tax deal with the Swiss authorities. Allowing for these factors, borrowing was similar to a year ago, though April and May taken together are around 3 billion down. More here.