{"id":3033,"date":"2010-07-21T07:50:10","date_gmt":"2010-07-21T07:50:10","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=3033"},"modified":"2025-03-27T15:49:05","modified_gmt":"2025-03-27T15:49:05","slug":"uk-budget-deficit-still-on-course-for-undershoot","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=3033","title":{"rendered":"UK budget deficit still on course for undershoot"},"content":{"rendered":"<p>Public sector borrowing was higher than expected in June, but recent figures remain consistent with an undershoot of the Budget forecast for 2010-11.<\/p>\n<p>The Office for Budget Responsibility (OBR) projects a fall in net borrowing, excluding the temporary effect of financial interventions, from &pound;154.6 billion in 2009-10 to &pound;149 billion this year. Attempting to adjust for seasonal factors, borrowing averaged &pound;12.25 billion per month between April and June, or &pound;147 billion annualised &ndash; see chart. The OBR forecast, therefore, implies no further improvement &ndash; even a small worsening &ndash; over the remainder of 2010-11.<\/p>\n<p>This is unlikely because, first, the benefits of economic recovery should grow as the year progresses and, secondly, the coalition has announced spending cuts and tax rises worth &pound;8.1 billion in 2010-11 that have yet to be reflected in the monthly numbers. Put differently, even assuming no impact from the recovery, these measures together with the recent run-rate imply borrowing of &pound;139 billion this year (i.e. &pound;147 billion minus &pound;8 billion), &pound;10 billion less than the OBR&#8217;s forecast.<\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" src=\"\/storage\/graphs\/uk-public-sector210710.gif?__SQUARESPACE_CACHEVERSION=1279702806638\" alt=\"\" \/><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Public sector borrowing was higher than expected in June, but recent figures remain consistent with an undershoot of the Budget forecast for 2010-11. The Office for Budget Responsibility (OBR) projects a fall in net borrowing, excluding the temporary effect of financial interventions, from &pound;154.6 billion in 2009-10 to &pound;149 billion this year. Attempting to adjust [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3033","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3033"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3033\/revisions"}],"predecessor-version":[{"id":5342,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3033\/revisions\/5342"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}