(MENAFN) Data showed that British budget deficit declined to USD16.5 billion in May from USD19.76 billion a year earlier, a smaller gap than economists had forecast, Arab News reported.
Strong income tax receipts pushed British government borrowing to its lowest May since 2007, adding to signs that revenue growth could play a major role in debt-reduction plans being drafted by finance minister.
That is something with little precedent in post-war Britain, and it could help reduce public debt faster after it to reach a record USD2.38 trillion in May, more than 80 percent of gross domestic product.
"With a long way to go in order to restore the public finances to better health, a major intensification of the fiscal squeeze is looming," an analyst at Capital Economics said.
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