Public finance bulletin: May 2008

<p><p><h4>Headline Comparisons</h4><ul><li><em class="bold">Public sector surplus</em> on the current budget in 2007-08 is now estimated to have been minus £5.7bn (i.e. in deficit) compared to last month's estimates which suggested a deficit of £7.6bn, the March 2008 Budget projection of minus £7.9bn (and the March 2007 Budget projection of minus £4.3bn).<li><em class="bold">Public sector net borrowing</em> in 2007-08 is now estimated to have been £34.3bn compared to last month's estimates which suggested borrowing of £35.6bn, the March 2008 Budget projection of £36.4bn (and the March 2007 Budget projection of £33.7bn).<li><em class="bold">Public sector net debt</em> at the end of 2007-08 is now estimated to have been £527.7bn, or 36.7% of national income, the same as last month's estimates and lower than the March 2008 Budget projection of 37.1% (and the March 2007 Budget projection of 38.2%). This figure excludes the impact of the reclassification of Northern Rock plc and the Bank of England onto the public sector balance sheet. Figures in today's press release from the ONS show that including the net liabilities of these organisations would increase public sector net debt at the end of March 2008 from £527.7bn to £620.1bn (or 43.1% of national income).<li><em class="bold">Central government current receipts</em> in April were 3.7% higher than in the same month last year. The 2008 Budget implied that central government current receipts for the whole of 2008-09 would be 4.7% above 2007-08 levels.<li><em class="bold">Central government current spending</em> in April was 3.6% higher than in the same month last year. The 2008 Budget implied that central government current spending for the whole of 2008-09 would be 5.3% above 2007-08 levels.<li><em class="bold">Public sector net investment</em> in April was £0.05bn compared to £0.1bn in the same month last year. The Budget predicted that net investment in 2008-09 would be £33.8bn, which is 18.0% above last year's level.</ul></p></p>