Public finance bulletin: May 2007

Headline Comparisons

• Public sector surplus on the current budget in 2006-07 is now estimated to have been £7.6bn (i.e. in deficit) compared to last month's estimates which suggested a deficit of £8.8bn, the March 2007 Budget projection of minus £9.5bn (and the March 2006 Budget projection of minus £7.0bn).
• Public sector net borrowing in 2006-07 is now estimated to have been £33.8bn compared to last month's estimates which suggested borrowing of £33.6bn, the March 2007 Budget projection of £35.0bn (and the March 2006 Budget projection of £35.8bn).
• Public sector net debt at the end of 2006-07 is now estimated to have been £501.4bn, or 37.4% of national income, unchanged from last month's estimates and compared to the March 2007 Budget projection of 37.2% (and the March 2006 Budget projection of 37.5%).
• Central government current receipts in April were 4.1% higher than in the same month last year. The 2007 Budget implied that central government current receipts for the whole of 2007-08 would be 6.9% above 2006-07 levels.
• Central government current spending in April was 4.8% higher than in the same month last year. The 2007 Budget implied that central government current spending for the whole of 2007-08 would be 5.7% above 2006-07 levels.
• Public sector net investment in April was £1.3bn compared to £2.0bn in the same month last year. The Budget predicted that net investment in 2007-08 would be £29.4bn, which is 12.3% above last year's level.