The UK budget deficit is getting worse
News that Britain's budget deficit reached a colossal £13 billion in June alone, the worst figure on record for this particular month, has further deflated the balloon of those who believe the UK economy has turned. Despite constant denials by the UK authorities regarding the perilous state of the UK finances, the recent IMF (International Monetary Fund) report which cited the UK as potentially at risk of a double dip recession, appears to have hit the nail on the head.
Even though the figure of £13 billion was actually lower than the £15.5 billion which had been forecast by analysts, there is no escaping the fact that the UK budget is in a terrible state. The UK government has now borrowed in excess of £41 billion so far this year which is significantly higher than the £19.6 billion borrowed at the same time last year. While we would like to suggest that the UK authorities now have the budget deficit under control, there is no doubt whatsoever in the minds of analysts and economists that the level of debt in the UK is set to reach £1 trillion and the budget deficit will be stretched further.
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