|Date:||26 June 2012|
Today the Office for National Statistics and HM Treasury published Public Sector Finances May 2012. We now have details of central government receipts, central government spending, public sector net investment, borrowing and debt for the first two months of financial year 2012–13.
Rowena Crawford, a senior research economist at the IFS, said:
“Today’s figures indicate that over the last two months central government current spending has grown more quickly than forecast for the year as a whole, mainly due to relatively rapid growth in welfare spending in both April and May. Receipts have grown less quickly than forecast by the Office for Budget Responsibility for the year as a whole, in part due to weak corporation tax receipts in April. Receipts of income tax, national insurance contributions and capital gains tax were weak in May but, taking April and May together, have so far this year grown more quickly than forecast for the year as a whole. However, since we are only two months into the financial year, these figures do not provide much guide as to how the public finances will evolve over the whole year.
Today’s figures also include a number of large revisions to data from earlier months. Borrowing in 2011−12 is now estimated to have been £127.6 billion, above the £124.4 billion estimated in last month’s figures and also above – although close to – the £126.0 billion forecast by the Office for Budget Responsibility at the time of the March Budget. The revision to borrowing is in part due to a £1.0 billion downwards revision to estimated revenues and a £0.5 billion upwards revision to central government current spending. The significant remainder is due to a number of methodological and classification changes, which were already taken into account in the March Budget forecast.”