[Image: Samuel Tombs of Pantheon Macroeconomics.]

[Image: Samuel Tombs of Pantheon Macroeconomics.]

Didn’t someone already say Osborne was certain to overshoot his borrowing target for this year? Who was that?

Oh, yes, that’s right – it was This Blog.

Nobody should be surprised, though. George Osborne never wanted to eradicate the national deficit. Only a fool would believe he did.

The Conservative Government needs to keep the deficit going, in order to justify its real plan – the eradication of the welfare state and the privatisation of the National Health Service.

They are helped in this ambition by the fact that they appear to have convinced enough voters in the United Kingdom that it is possible to cut your way out of an economic deficit. It isn’t.

The only way to build a budget surplus is economic growth. Osborne is going in precisely the wrong direction; instead of cutting, he should be investing.

George Osborne must borrow less than £7 billion in the final two months of the financial year in order to meet his near-term borrowing goals, in an early sign that the Government’s promise to close Britain’s deficit by 2019-20 might be running off course.

The Office for Budget Responsibility, the UK’s fiscal watchdog, said at the end of last year that Osborne would have to keep borrowing to £73.5 billion in the 2015/16 financial year to be on course for an overall surplus by the end of the decade.

The Government borrowed £66.5 billion between April and January, leaving less than £7 billion of fiscal space for the final two months of the year if it is to meet the OBR’s forecast. That’s less than half the £14.8 billion borrowed in the same period last year.

Osborne has already missed his 2010 election pledge to eradicate the deficit by 2015. His chance of finishing the job by 2020 is now in doubt.

Source: The chart that shows the UK Government looks set to miss its borrowing target | Business News | News | The Independent

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