World Economy

UK Borrowing Less

UK Borrowing LessUK Borrowing Less

The UK’s public sector net borrowing in the year ending in March 2015 was 11% less than it was the year before, the Office for National Statistic said, BBC reported. In a report that revealed monthly borrowing in April as well, the ONS said the public sector was slowly cutting the deficit and it announced PSNB or the public deficit went down by 26.9% to £6.8b ($10.6b). The ONS reported a 3.7% rise in income tax and a slight jump in VAT income as well, which contributed to a decreased deficit. Another factor was the 4.2% decrease in public spending to  April 2015, compared to April last year. In total, central government income over the year was £613.1b, while spending was £685.4b. Income tax accounted for 27.7% of the total income and the government spent 58.5% of the total spending on central government departments. Analysts at IHS Global Insights said that the results were a good step in the right direction of Osborne’s plan to cut the deficit for the coming year to 4.0% of the GDP.