UK government borrowing falls in June as economy reopens

UK public sector net borrowing in June fell to 22.8 billion pounds (about $ 31.1 billion) as the economy reopened, but it remained the second highest June borrowing since the start of monthly records in 1993, the UK’s Office for National Statistics (ONS) said on Wednesday. .

In June, the net debt of the public sector, excluding public sector banks (ex PSNB), was 5.5 billion pounds (about 7.5 billion dollars) less than in June 2020, according to the ONS .

At the same time, during the fiscal year ended in March 2021, the country’s public debt (ex PSNB) was estimated at 297.7 billion pounds (around 405.6 billion dollars), reaching the highest level since the end of the year. of World War II, the ONS said.

“The £ 297.7 billion borrowed (ex PSNB) in 2020/21 was almost double that of 2009/10 at the height of the financial crisis,” tweeted Fraser Munro, public sector finance statistician at the ONS.

Data showed that public sector net debt (ex PSND) stood at £ 2,218.2 billion ($ 3,022.6 billion) at the end of June 2021, or around 99.7% of gross domestic product. (GDP), the highest ratio since the 102.5% recorded in March. 1961.

In addition, Britain paid 0.8 billion pounds ($ 1.09 billion) to the European Union (EU) in June as part of the financial settlement under the withdrawal agreement signed between the Britain and the regional bloc, the ONS said.

“Although the UK’s regular monthly VAT and gross national income based contributions to the EU budget ceased with effect from January 2021, we are still obligated to make further payments to the EU. ‘EU such as those described in the European Union Act (Withdrawal Agreement) 2020, “said the ONS.

“In June, the UK made its first payment to the EU under the £ 0.8bn Withdrawal Agreement,” Munro said, adding that “we expect more similar payments will be carried out in the coming months “.

Britain is owed € 47.5 billion ($ 56 billion) to the EU and the calculation is final, a European Commission spokesperson said in Brussels last Friday.

However, the UK government has dismissed these claims.

“We don’t recognize this figure. This is an estimate produced by the EU for its own internal accounting purposes. This does not reflect all of the money owed to the UK which reduces the amount we pay. Our estimate remains in the middle range of £ 35bn to £ 39bn (around $ 47.7bn to $ 53.1bn), ”the Guardian newspaper said, citing a spokesperson for the Prime Minister.

During the COVID-19 pandemic, the UK government and decentralized administrations announced more than 50 programs to support individuals and businesses affected by the pandemic, the ONS said.

England lifted almost all of its remaining COVID-19 restrictions on Monday despite the growing number of infections across much of the region.

To get life back to normal, countries like Britain, China, Russia, the United States as well as the European Union have fought against time to deploy coronavirus vaccines.
Source: Xinhua

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