Quote of the day

“I find economics increasingly satisfactory, and I think I am rather good at it.”– John Maynard Keynes

Friday, 22 May 2015

Up to date UK Public Finance data

Privatisation:

The plan is to allow government experts to work together in order to realise the government plan of selling off a wide range of publically-owned assets, including the sale of shares in Lloyds Banking Group, UK Asset Resolution assets, Eurostar and the pre-2012 income contingent repayment student loan book.

Borrowing:

In the financial year ending 2015 (April 2014 to March 2015), public sector net borrowing excluding public sector banks (PSNB ex) was £87.7 billion (4.8% of Gross Domestic Product (GDP)) a decrease of £10.8 billion compared with the previous financial year.
In April 2015, PSNB ex was £6.8 billion; a decrease of £2.5 billion compared with April 2014. Debt interest decreased by £0.4 billion, or 6.9%, to £5.0 billion.
National debt:
At the end of April 2015, public sector net debt excluding public sector banks (PSND ex) was £1,487.7 billion (80.4% of GDP); an increase of £83.6 billion compared with April 2014.
However, using international accounting standards:

At the end of April 2015, General Government Gross Debt (Maastricht debt) was £1,602.1 billion (86.5% of GDP) and General Government Net Borrowing (Maastricht deficit) in the financial year ending 2015 (April 2014 to March 2015) was £92.4 billion (5.1% of GDP).
Then there is inflation, as felt by renters: 

Residential rents have grown 4.6% year-on-year – the fastest rate of increase since November 2010.

My Comment: I think the point is that public finances are in a bad state, hence the privatisation (privatisation as a fiscal policy, not supply-side!). If PSNB included the banks national debt would read £1768 billion or 95.5% of GDP. Be happy! Don't worry!

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