LONDON (Reuters) -Britain’s government borrowed 151.9 billion pounds ($202.07 billion) over the course of the 2024/25 financial year, considerably more than the official budget forecasters had estimated only a month ago, data showed on Wednesday.
In its forecasts published in March, the Office for Budget Responsibility had projected a budget deficit for the financial year ending in March 2025 of 137.3 billion pounds.
With finance minister Rachel Reeves’ budget plans hinging on a tiny buffer against her self-imposed fiscal rules – equivalent to less than 1% of annual spending – investors are watching public sector finance data with increased scrutiny.
British government bonds have become increasingly volatile in recent years, reflecting unease in financial markets over Britain’s mix of low growth, high debt interest costs and persistent inflation.
In March alone, the government borrowed 16.444 billion pounds, the Office for National Statistics said.
A Reuters poll of economists showed a median forecast of 16.0 billion pounds for public sector net borrowing.
($1 = 0.7517 pounds)
(Reporting by Andy Bruce; editing by Sarah Young)
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