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laurejon

Another Fine Mess You Got Me Into Stanley

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Gordon Brown who does the work of two men (Laurel and Hardy) has got us all into another fine mess.

He has put the public into debt to the tune of 500 Billion Pounds. The figure is growing each day, and we are currently not managing to service the interest, so no hope of ever paying it off. In fact, the figure is rapidly rising due to increases in interest rates as Gordon forgot to chose the fixed rate option.

Public Sector

August: £7.0bn current budget deficit

206.gif

In August 2007, the public sector showed a deficit on current budget of £7.0 billion, compared with a deficit of £5.5 billion in August 2006.

Concentrating on one month in isolation can give a distorted picture as movements can be erratic. Focusing on the financial year to date generally provides a better overview. Between April 2007 and August 2007 of the financial year 2007/08, the public sector recorded a deficit of £11.7 billion. At the same stage of the 2006/07 financial year, a deficit of £8.6 billion had been recorded.

More generally, the public sector recorded deficits between 1991/92 and 1997/98 before moving into surplus in 1998/99. Deficits have been recorded since 2002/03.

An alternative measure of the public sector fiscal position is public sector net borrowing. This additionally takes account of capital investment. In August 2007, there was net borrowing of £9.1 billion, which compares with £6.7 billion in August 2006. The Budget forecast for 2007/08 is net borrowing of £34.0 billion.

Public sector net debt, expressed as a percentage of gross domestic product (GDP), was 36.7 per cent at the end of August 2007, compared with 36.2 per cent at end of August 2006. Debt peaked at 43.8 per cent of GDP in 1997, its highest since the mid-1980s. The debt ratio then fell steadily as public sector finances improved, reaching a low of 29.8 per cent in February 2002. Since then it has risen. The Budget forecast for the end of March 2008 is 38.2 per cent.

Net debt was £509.3 billion at the end of August, compared with £476.0 billion a year earlier. The Budget forecast for net debt at the end of March 2008 is £540.0 billion.

Source: Office for National Statistics (ONS)

Notes:

The format summarises the public sector finances presentation in the Budget Report 2007 (HM Treasury, 21 March 2007). The statistics are used to monitor progress against the Government's key fiscal rules.

Published on 24 September 2007 at 9:30 am

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Well, yeah.

That's what all this is about.

The state is about to collapse - everything that is happening at the moment is transfering assets into private hands before the whole lot goes down the tubes.

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206.gif

what i find interesting is the big movements in July and January in the cumulative budget, when self assessment tax returns are paid, I would guess this is reason for the reduction.

Also what is really interesting is the reduction in the net debt percentage from 97 to 2002ish, I would have thought it would have gone up not down. I am also suprised that net debt is lower now than in 97.

It will be interesting to see how it unfolds over the coming years, as people tighten their belts, bonuses are smaller and tax revenues shrink.

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Also what is really interesting is the reduction in the net debt percentage from 97 to 2002ish, I would have thought it would have gone up not down. I am also suprised that net debt is lower now than in 97.

What WOULD be interesting is to understand where the values comprising the graph come from. What sort of offset, off book, defferred liabilities are we not seeing here since the spinmeisters came to town. PFI anybody??

Edited by DabHand

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Also what is really interesting is the reduction in the net debt percentage from 97 to 2002ish, I would have thought it would have gone up not down. I am also suprised that net debt is lower now than in 97.

PFI, Gordons off balance sheet spending spree.

If all the spending on shiny new hospitals and schools showed up as public sector debt the figures would look a tad worse :ph34r:

Edit Got me acronyms mixed up

Edited by Griptool

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The deficit is around 2.5% of GDP........which is way too big considering where we are in the economic cycle....How big will it be if we go into recession and tax revenues fall and social security spending increases????????

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