Related News
Britain's borrowing a stark reminder
September 22, 2010, Wednesday
|
Print Edition
Print Edition
BRITAIN'S public sector borrowing soared to 15.9 billion pounds (US$24.7 billion) in August, a record for the month and well above analysts' estimates, official data showed yesterday. The August borrowing compared to 14.1 billion a year earlier, the Office for National Statistics said.
The unexpectedly large figure is a stark reminder of the challenge the government faces as it prepares to announce its plans for spending cuts next month.
"August's overshoot clearly casts some doubt on the ability of the government to meet the June budget projection of annual borrowing of 149 billion pounds," said Samuel Tombs, economist at Capital Economics.
He said it was disturbing that borrowing climbed despite stronger than forecast growth in the economy in the second quarter.
The figures for the first five months of the fiscal year were slightly more encouraging for the government, with total borrowing of 58.1 billion pounds compared to 61.9 billion pounds a year earlier.
"We do not draw any strong conclusions from today's news regarding the medium-term outlook for the deficit, which the evidence so far suggests will come in a little below the full-year forecast of 149 billion pounds," said Simon Hayes at Barclays Capital.
"However, this record level of borrowing will keep the pressure on the government to press ahead with its ambitious deficit reduction plan."
The unexpectedly large figure is a stark reminder of the challenge the government faces as it prepares to announce its plans for spending cuts next month.
"August's overshoot clearly casts some doubt on the ability of the government to meet the June budget projection of annual borrowing of 149 billion pounds," said Samuel Tombs, economist at Capital Economics.
He said it was disturbing that borrowing climbed despite stronger than forecast growth in the economy in the second quarter.
The figures for the first five months of the fiscal year were slightly more encouraging for the government, with total borrowing of 58.1 billion pounds compared to 61.9 billion pounds a year earlier.
"We do not draw any strong conclusions from today's news regarding the medium-term outlook for the deficit, which the evidence so far suggests will come in a little below the full-year forecast of 149 billion pounds," said Simon Hayes at Barclays Capital.
"However, this record level of borrowing will keep the pressure on the government to press ahead with its ambitious deficit reduction plan."
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
