|Date:||21 June 2013|
|Authors:||Rowena Crawford , Carl Emmerson and Gemma Tetlow|
Today the Office for National Statistics and HM Treasury published Public Sector Finances May 2013. 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 2013-14.
Rowena Crawford, a Senior Research Economist at the IFS, said:
"Much attention might be focused on today's revision to the last two financial years' data which means that borrowing in 2012-13 is now estimated to have been £0.2 billion higher than in 2011-12. This is of no direct economic consequence, and the difference is so small that subsequent revisions could easily reverse this. Of more interest is the revision made to accrued receipts of income tax and capital gains tax in April 2013. These are now estimated to have been 27.8% higher than in April 2012. While month-on-month fluctuations are often large, this is the largest since the monthly data began in 1998. Unfortunately rather than reflecting strong growth in underlying incomes, this growth is more likely to reflect some high income individuals pushing part of their income - such as bonuses and special dividends - from the last tax year into the current tax year so as to benefit more from the reduction in the top rate of income tax from 50p to 45p."