"The important point here is that we just don't know how much money we are expecting to receive, so we are recording it as the cash comes in,"
- The Office for National Statistics
Britain's public sector net borrowing that exclude financial interventions, reached £8.5 billion last month, more than initially expected, compared with £8.8 billion a month earlier Analysts, however, expected a £8 billion figure. According to the report from the Office for National Statistics, the first tranche of money total £3.9 billion was transferred from the BoE's Asset Purchase Facility Fund, while the second transfer estimated £3.2 billion from one-off tax payments by banks from Switzerland.
During the 2012-2013 year public sector borrowing stood at £118.8 billion, up from £118.5 a year earlier. At the same time, public sector net debt, which is considered as a measure of the total amount the nation owes, jumped to £1.2 trillion. It means that the total debt has now surged to 74.9% of the nation's gross domestic product, up from 71.1% of GDP at the end of May 2012. Recent figures are adding pressure on Chancellor George Osborne, before the next Wednesday's meeting in regards to the government's spending for the 2015-2016 financial year. As a part of a fiscal consolidation policies, the U.K. Chancellor George Osborne presented a spending review a month earlier, reflecting government's commitment to proceed with fiscal cuts in 2015-2016 to bring borrowing down to more sustainable levels.
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