UK Budget Deficit Widens

(RTTNews) - The UK budget deficit reached the second highest level on record for the month of February, the Office for National Statistics reported Friday.

Public sector net borrowing rose by GBP 2.2 billion to GBP 14.3 billion in February, surpassing the expected level of GBP 8.7 billion.

The increase was primarily due to the timing of central bank government debt interest payable.

In February, central government receipts grew 9.3 percent to GBP 95.1 billion. At the same time, central government current expenditure increased 9.6 percent to GBP 92.2 billion due to higher debt interest payable.

In the financial year to February, borrowing decreased GBP 11.9 billion from the last year to GBP 125.9 billion, lower than the Office for Budget Responsibility's projection of GBP 127.8 billion for the period.

Borrowing was estimated at 4.1 percent of GDP but 0.6 percentage points less than in the same period last year. The OBR forecast borrowing to reach 4.3 percent of GDP.

Public sector net debt excluding public sector banks was estimated at 93.1 percent of GDP at the end of February, the ONS said.