The British budget
THE media narrative on British government finances concerns savage spending cuts. The data continue to tell a rather different story. The latest monthly figures show that the May deficit was some £2.7 billion higher than in the same month of 2011, taking total debt to £1 trillion (will there be a parade? Oh yes, there is the Olympics). There was a shortfall in tax receipts, relative to plan, but receipts were up compared with the previous year.
The widening in the deficit came from the spending numbers.