UK Budget Deficit Overshoots Estimate

(RTTNews) - The UK budget deficit far exceeded the government estimates in the fiscal year ended March, official data revealed on Wednesday.

Public sector net borrowing in the financial year ending March rose by GBP 20.7 billion to GBP 151.9 billion, the Office for National Statistics reported. This was the third highest borrowing on record since 1947 and also stood above the GBP 137.3 billion forecast by the Office for Budget Responsibility in March. In March alone, public sector net borrowing was GBP 16.4 billion, which was above economists' forecast of GBP 15.4 billion.

At the end of March, the net debt-to-GDP ratio was estimated at 95.8 percent.

Data showed that public borrowing overshot the OBR's forecast even before the influence from the tariff chaos is felt, Capital Economics economist Ruth Gregory said.

This raises the chances that if the Chancellor wishes to stick to her fiscal rules, more tax hikes in the Autumn Budget will be required, the economist noted.