( London, 22nd July 2020 ) In response to the loss of public finances caused by the new crown virus pandemic, the British government's quarterly debt increased to a record 127.9 billion pounds (691.9 billion ringgit) between April and June this year.
According to statistics released by the National Bureau of Statistics on Tuesday local time, the debt in June was 35.5 billion pounds (192 billion ringgits), which was about five times higher than the same period last year. This figure brings the total government debt to a record 1.980 billion pounds (1,0710.3 billion ringgits), equivalent to 99.6% of gross domestic product (GDP), the highest level since the March 1961 fiscal year.
The Government Budget Accountability Office said the government is expected to borrow 372 billion pounds (RM212.2 billion) this year to bridge the gap between taxation and public expenditure. This includes additional borrowing for the 30 billion pounds (162.3 billion ringgit) package announced by the Minister of Finance earlier this month. The package aims to protect employment and boost the economy.
British economist Pugh said that government borrowing is still growing at an abnormal rate, the slowdown in economic recovery and the possibility of a further rise in the unemployment rate in the second half of this year will prompt the government to announce additional fiscal expenditures in the next budget.
Silvana, a member of the Monetary Policy Committee, believes that economic activities still cannot fully return to normal due to the impact of the epidemic, and that "the British economy is difficult to grow and will falter in the next few months." "Due to the existence of health risks, this will lead to a decline in income and employment levels, which will cause the UK to face a downward spiral."
British official data last week showed that the British economy grew at 1.8% in May, lower than expected.
**Info & Image are taken online
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