Darling ramps up British borrowing plans to 220 bn

Discussion in 'Economics' started by ASusilovic, Apr 22, 2009.

  1. he British government plans to ratchet up public borrowing to a record level this year in an effort to grow the economy out of the deepest recession since World War II, but will move to hike taxes and aggressively rein in red ink in following years as a recovery takes hold, Chancellor of the Exchequer Alistair Darling said Wednesday.

    Delivering the annual budget to the House of Commons, Darling said borrowing will total a whopping 175 billion pounds ($255.9 billion), or 12.4% of gross domestic product, in 2009-10. Borrowing totaled 90 billion pounds in 2008-09.

    Darling forecast borrowing of 173 billion pounds in 2010, with the total then falling to 97 billion pounds by 2013. The sharp rise in borrowing will push total government debt to 79% of GDP by 2013 from 59% this year, he said.
    The British pound extended losses, falling 1.4% versus the U.S. dollar to $1.4472.


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