Today the Office for National Statistics and HM Treasury published Public Sector Finances June 2006. We now have details of central government receipts, central government spending, public sector net investment, borrowing and debt for the first quarter of financial year 2006-7.
Central government current receipts in June were 6.8% higher than in the same month last year. Receipts in the first three months were 5.1% higher than in the same months of 2005-06. The 2006 Budget implied that central government current receipts for the whole of 2006-07 would be 6.4% above 2005-06 levels. Strong growth in tax revenues in June will be welcome to the Chancellor, but over the financial year to date it is still weaker than he had hoped at Budget time.
Central government current spending in June was 10.2% higher than in the same month last year. Spending in the first three months of 2006-07 was 8.3% higher than in the same months of 2005-06. The 2006 Budget implied that central government spending for the whole of 2006-07 would be 4.8% above 2005-06 levels. Central government spending is accelerating further away from the Chancellor's Budget forecast, but the Treasury believes that this reflects timing effects that will unwind.
Public sector net investment in June was 0.9 billion, or 37.8% lower, than in the same month last year. Public sector net investment has totalled 3.8 billion during the first three months of 2006-07, up 16.0% on the same months of 2005-06. The Budget predicted that net investment in 2006-07 would be 28.8 billion, which is 11.9% above last year's level. The Chancellor will be pleased to see that public sector investment is growing strongly relative to last year.