Sky High British Budget Deficit Due to Costs of the Corona Crisis
Britain’s budget deficit rose to an unprecedented level of £ 208.5 billion in the first half of the fiscal year, which commenced in April, at £ 228 billion.
This is due to the high expenditure of the British government to get the economy through the corona crisis.
September saw a deficit of £ 36.1 billion, which is higher than average economists expected. For example, the government spent a lot of money to support companies and send employees on paid leave so that they would not be fired.
On the other hand, there is lower income from taxes, so that more borrowing had to be done. Britain’s public debt has now risen to over £ 2 trillion.
The British statistics office also announced that inflation rose 0.5 percent year-on-year in September, after an upsurge of 0.2 percent in August.