1415 Hrs GMT London Thursday 19 February 2009
KHOODEELAAR! evidential note on the UK 'National Statistics office' figures on Public debt soaring beyond £Billions into £Trillions...
http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=330013
Public debt climbs to 47.8% as recession hits exchequer
By Tony Bonsignore | 12:49:08 | 19 February 2009
The forced taxpayer investment into Royal Bank of Scotland and Lloyds could add a further £1-1.5 trillion to the public debt - equivalent to 70%-100% of GDP, the Office for National Statistics said today.
The warning came at the same time as new figures showed a further deterioration in the state of public sector finances, with the monthly public sector net borrowing surplus standing at £3.3 billion in January - down from £13.9 billion in the same month last year.
Public sector net debt in the ten months to the end of January now totals £703 billion, compared to just £608 billion in the same period the previous year.
This latest figure is equivalent to 47.8% of GDP - way above the government’s previous self-imposed ceiling of 40%.
Including the RBS/ Lloyds liability, however, this percentage could swell to closer to 150% over the next few years.
Public sector net borrowing (PSNB) in the current financial year now totals some £67.2 billion, against the government forecast of £78 billion for the whole fiscal year. Capital Economics now predicts the government could exceed this target by up to £20 billion.
And the PSNB next year could soar to £200 billion, it warns.
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