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| UK government hits borrowing target in 2013-14 | |
| (35 minutes later) | |
| The UK government borrowed £107.7bn in the financial year to April 2014, lower than the £115.1bn amount it borrowed the previous year. | The UK government borrowed £107.7bn in the financial year to April 2014, lower than the £115.1bn amount it borrowed the previous year. |
| In the Budget, the Office for Budget Responsibility (OBR) had estimated a deficit for the full year of £107.8bn. | In the Budget, the Office for Budget Responsibility (OBR) had estimated a deficit for the full year of £107.8bn. |
| The government wants to eliminate the budget deficit by 2017-18. | The government wants to eliminate the budget deficit by 2017-18. |
| Borrowing in March fell to £6.7bn from £11.4bn a year earlier, excluding financial interventions, the Office for National Statistics (ONS) said. | Borrowing in March fell to £6.7bn from £11.4bn a year earlier, excluding financial interventions, the Office for National Statistics (ONS) said. |
| 'Psychological boost' | |
| Meanwhile, the figure for February was revised down from £9.3bn to £8.8bn. | Meanwhile, the figure for February was revised down from £9.3bn to £8.8bn. |
| The annual figure is the first provisional estimate of the financial year, and will be revised as more data becomes available. | The annual figure is the first provisional estimate of the financial year, and will be revised as more data becomes available. |
| It excludes the effects of both the transfer of the Royal Mail pension scheme to the government, and gains from the Bank of England's asset purchases for quantitative easing (QE). | It excludes the effects of both the transfer of the Royal Mail pension scheme to the government, and gains from the Bank of England's asset purchases for quantitative easing (QE). |
| The UK's public sector net debt, excluding financial interventions, is now £1,268.7bn, equivalent to 75.8% of GDP. This compares with a figure of £1,185.2bn, or 74.2% of GDP, at the end of March 2013. | |
| £1,185.2 billion (74.2% of GDP) at the end of March 2013. | |
| The OBR has forecast that the ratio will peak at close to 79% in 2015-16. | |
| Howard Archer, chief economist at analysts Global Insight, said Chancellor George Osborne had been "helped enormously by the March shortfall being limited to £6.7bn". | |
| "While in reality, it made little difference whether the chancellor just hit or just missed his fiscal target for 2013-14, the fact that he did make it provides a psychological boost for the government and it may support belief that he can hit his longer-term targets," said Mr Archer. | |
| "Nevertheless, a deficit of £107.7bn in 2013-14 highlights the fact that here is still an awfully long way to go in getting the public finances into decent shape." | |
| 'Difficult task' | |
| David Kern, chief economist at the British Chambers of Commerce (BCC), said the figures showed that gradual progress has been made over the past year in stabilising public finances. | |
| "However, bringing down our budget deficit remains a difficult task. Since the financial crisis, we have seen falls in oil and gas output and weaknesses in the financial sector," he added. | |
| "These structural changes have reduced the country's ability to generate tax revenues, and future public spending must factor in these challenges. | |
| "Although progress may be gradual, reducing our public sector debt is necessary, as it will help businesses drive the recovery, and create jobs and wealth." |