British Chancellor of the Exchequer George Osbourne has a spring in his step today after meeting his full-year borrowing target for the fiscal year 2013-14.
Total Government borrowing for the current year was £107.7bn, falling just below the set target of 107.8bn.
Experts had been skeptical about Osborne meeting his borrowing target, and had predicted a fiscal deficit of £110bn.
Chief economist at IHS Global Insight, Howard Archer, admitted that: “While in reality it made little difference whether the Chancellor just hit or just missed his fiscal target for 2013/14 the fact that he did make it provides a psychological boost for the government and it may support belief that he can hit his longer-term targets.”
The conservative/liberal coalition government is forecast to have reduced borrowing to £95.5bn in 2014-15. That will be a huge boost for Osbourne going into the general election in 2015 as he will be expected to argue that the economy is safest under him and his party.
Current data also predicts that if current falls in borrowing continue, the economy will achieve a surplus of £4.8bn in the fiscal year 2018-19.