Britain's Budget Deficit Is Expected To Reach Almost £ 400 Billion

Britain's Budget Deficit Is Expected To Reach Almost £ 400 Billion

Britain's budget deficit is expected to reach almost £ 400 billion in the current financial year, the highest in 75 years. This was stated by the British Minister of Finance Rishi Sunak. According to the minister, the world's sixth largest economy should fall by 11.3 percent this year. If the estimate is confirmed, it will be the most significant decline in more than 300 years. The government expects growth of 5.5 percent next year, added Sunak, who presented the annual spending plan. The minister said the budget deficit should reach 394 billion pounds (442.06 billion euros) in the current financial year, which ends on March 31. This represents 19 percent of gross domestic product. It is Britain's highest budget deficit since the end of World War II. By comparison, in the fiscal year 2019/2020, which ended when the British economy was hit by a new coronavirus pandemic, the budget deficit was around £ 56 billion, or 2.5 per cent of GDP. The British economy is one of the hardest hit by the new coronavirus pandemic, with Sunak saying the cost of fighting the pandemic should be £ 280 billion this fiscal year. He originally expected the cost to be around £ 200 billion.