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How high will the UK budget deficit go?

As we continue to digest news of the £16 billion borrowed by the UK government in August alone to cover the budget shortfall, even though many people believe we are still on target for a £175 billion deficit for the tax year, there are some who believe this figure could be very conservative. So how high can the UK budget deficit go?

While there are differing opinions as to how high the UK budget deficit will go some believe the figure could hit as high as £220 billion in the current year and see UK national debt fast approaching £1 trillion (even though many people believe the true figure has broken his barrier already). So what do these figures actually mean?

When you consider the UK government has borrowed £65.3 billion so far in the 2009/10 tax year, this is the equivalent of £1070 for every person in the UK!

This is a very frightening situation for UK taxpayers and although the UK government is on the face of it remaining calm and focused, the ever-growing benefit payments in the UK are starting to take a massive toll. Whether or not the Treasury underestimated the depth and length of the recession remains to be seen but recent figures appear to be moving out of kilter with previous forecasts.

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