MNI DATA ANALYSIS: FY 2017/18 Borrowing Undershoots Target>

-UK 2017/18 PSNBex -7.6% from 2016/17 to Stg42.6 billion

-UK 2017/18 net debt ex BoE 76.3% of GDP vs 79.5% 2016/17

-UK March borrowing Stg1.348 billion vs Stg2.133 billion March 2017

     By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - UK public borrowing fell well below the Office For 

Responsibility's target in the 2017/18 fiscal year, lifted by a record 

take in income, value-added and corporate taxes. 

     Borrowing, excluding the Bank of England, declined to Stg42.635 

billion in the just-ended financial year, from Stg46.152 billion a year 

earlier, the lowest full-year total since the 2006/07. 

     That left the current budget deficit in surplus, to the tune of 

Stg112 million in 2017/18, the first surplus for a fiscal year since 

2001/02. 

     Net debt, excluding the Bank of England, stood at 76.3% of gross 

domestic product, down from 79.5% a year earlier, and the lowest since 

2011/12. However, the debt ratio has been flattered this financial year 

by the shift of English Housing Association debt to the private sector. 

     Income tax receipts rose by 1.9% to Stg189.2 billion, while 

value-added tax receipts increased by 2.3% to Stg138.8 billion. 

Corporate tax receipts jumped by 5.5% to 57.3 billion, leaving all three 

categories at record highs in nominal terms. 

     However, the government also paid out a record Stg54.7 billion in 

interest, up 12.4% over 2016/17, a result of increased outlays on 

index-linked bonds, after inflation surged in the months after the 

Brexit vote. 

     In the month of March, borrowing, decreased sharply to Stg1.348 

billion, falling well short of the MNI median forecast of Stg2.9 

billion, from Stg2.133 billion in the same month of 2017. 

     Income tax receipts surged by 6.1% to Stg17.3 billion last month, a 

record high for the month of March. Government interest payments slumped 

by Stg1.0 billion -- or 75.2% -- to Stg300 million, in line with the 

fall in inflation at the start of the year. 

     The central government net cash requirement fell to Stg39.488 

billion in 2017/18 from Stg66.961 billion a year earlier. CGNR rose to 

Stg19.819 billion in March from Stg18.227 billion in the same month of 

2017. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]