19 July 2001, 13:22 UK June public finances-OVERVIEW
--UK Jun PSNCR deficit 8.166 bln stlg
--UK Jun PSNCR deficit bigger than expected
--UK Jun PSNB measure deficit 3.497 bln stlg
--Cumulative Apr-Jun UK PSNCR deficit 6.477 bln stlg
London, July 19 (BridgeNews) - The gathering pace of the government's
spending program showed through in the June public finance data to produce
a bigger than expected deficit. The public sector net cash requirement
rose to 8.166 billion sterling in June from 7.038 billion sterling in the
same month last year and forecasts for a deficit of about 7.4 billion
sterling, according to figures published Thursday by the Office for
National Statistics.
The public sector net borrowing requirement, which smoothes out the
cash measure by accruing spending and receipts across the course of the
year, measured 3.497 billion sterling, compared with 1.037 billion
sterling last year.
The May figure was also significantly revised to 3.377 billion
sterling from last month's estimate of 1.408 billion sterling. The ONS
said the revision reflected a string of small changes rather than any
single major adjustment.
The sharp annual rise in both the PSNCR and the PSNB highlighted the
big boost to the government's finances last year from the sale of mobile
phone licences.
The outstanding feature of the June figures was the big increase in
government spending, which confirmed that its spending plans were
beginning to filter through to the front line of public services. A
spokesman for the ONS said it was not yet possible to provide any detail
of the destination of spending but said it was in areas like school
refurbishment.
The June figure was also affected by the twice-yearly payment of
interest on government debt, which added roughly 4 billion sterling to the
June cash requirement.
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