The budget deficit continues to rise sharply. Three months into the 2020-21 fiscal year, tax payments received by HMRC are down by 35 per cent on last year, while central government spending is up 40 per cent. But year-to-date borrowing is lower than assumed in the central scenario from our Fiscal sustainability report. That reflects lower departmental spending and loan guarantee write-off costs that are not yet incorporated in the outturn data, as well as surprisingly strong June tax receipts.
July 21, 2020 – 205.02 KB
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Budget deficit reaches £128 billion in just three months
July 21st, 2020 | What's new, Monthly public finances release
The budget deficit continues to rise sharply. Three months into the 2020-21 fiscal year, tax payments received by HMRC are down by 35 per cent on last year, while central government spending is up 40 per cent. But year-to-date borrowing is lower than assumed in the central scenario from our Fiscal sustainability report. That reflects lower departmental spending and loan guarantee write-off costs that are not yet incorporated in the outturn data, as well as surprisingly strong June tax receipts.
Commentary on the public sector finances – June 2020