The UK has reported a budget deficit of 21.53 billion pounds in March, according to the Office for National Statistics (ONS). This figure is higher than anticipated and represents an increase from 20.7 billion pounds recorded in February. The ONS also revealed that public sector net borrowing was at its highest level since October 2015, when it stood at 22.1 billion pounds.
This news comes as no surprise given the current economic climate due to Brexit uncertainty and weakening consumer confidence levels across Britain, which have led to slower growth rates over recent months compared with last year’s figures. Furthermore, government spending on services, such as health care and education has risen significantly while tax receipts have fallen short of expectations due to lower wages and employment levels amongst other factors contributing towards this imbalance between expenditure and income streams for the Treasury Department.
For Britain’s economy to return back into balance, more needs to be done by policymakers, including increasing taxes or cutting costs, where possible so that future deficits can be avoided or reduced going forward – something that will prove difficult but necessary if long-term fiscal stability is desired by all involved parties within this process.
Read more at Reuters
