Today, British data showed that the budget deficit in Britain increased for the fiscal year ending in April, to record the fourth highest level on record.
The Office for National Statistics said: The volume of borrowing amounted to 139.2 billion pounds sterling in the last fiscal year, or about 5.5% of gross domestic product, which is a level higher by about 18 billion pounds over the previous fiscal year.
The office’s report attributed the increase in the budget deficit during the ending fiscal year to the government support package for energy bills for homes and companies, which cost about 50 billion pounds, in light of the rise in global energy prices as a result of the Russian military operation in Ukraine.
The increase in the volume of government borrowing came less than previously expected, as previous forecasts of the Office for Budget Responsibility indicated that borrowing in the past fiscal year would be in the range of EGP 152.4 billion, representing 6.1% of GDP, before falling to 5.1%. in the current fiscal year.
Jeremy Hunt, Treasury Secretary, said in a statement: The government “will not continue to borrow forever,” adding that the government has a plan to reduce borrowing rates and government debt, pointing out that “these numbers reflect the inevitable consequences of borrowing huge sums to help families and companies during the epidemic period and a price crisis.” energy”.
It should be noted that the British economy is going through the worst cost of living crisis in more than four decades, as a result of the increase in inflation rates to the level of 11%, which prompted the government to increase spending on energy subsidy programs and social assistance.
