London, September 22 (QNA) - UK public sector net borrowing, excluding public sector banks, rose to GBP 18.3 billion in August, exceeding market expectations of around GBP 15.7 billion amid continued pressure from higher public spending.
Data from the UK Office for National Statistics (ONS) showed that borrowing was higher than the GBP 15.4 billion recorded in August last year.
Cumulative borrowing from April through August stood at GBP 77.3 billion, down GBP 2.2 billion from the same period a year earlier, but GBP 8.1 billion above the Office for Budget Responsibility's (OBR) forecast.
Total public sector spending rose by GBP 6.7 billion year-on-year in August to GBP 117.2 billion, while public sector revenue increased by GBP 3.7 billion to GBP 99 billion.
Central government spending increased by GBP 4.9 billion to GBP 103.1 billion, driven by higher spending on goods and services and social benefits. Central government revenue rose to around GBP 89.8 billion, supported by higher income-related tax receipts.
The current budget deficit, which measures the gap between day-to-day spending and revenues, stood at around GBP 51.9 billion during the first five months of the financial year, exceeding the OBR's forecast of GBP 47.1 billion.
At the end of August, public sector net debt stood at around 93.8% of gross domestic product (GDP), remaining at historically high levels. (QNA)