By Lea Pachta
The CBI today commented on figures showing that UK borrowing has been revised down by £7.5 billion in 2009-10, and £5.5 billion in March alone.
Ian McCafferty, CBI Chief Economic Adviser, said:
“This revision has been driven by unexpected strength in tax receipts, particularly income and capital gains taxes, as well as social security contributions.
“It is uncertain to what extent the upside surprise to tax revenues reflects recovery in the real economy versus the unexpected strength of inflation in recent months. However, the new government cannot afford to be complacent. Revised economic and public finance forecasts will be issued over the next few weeks by the new Office for Budget Responsibility. These new forecasts may well show a more persistent deficit than the forecasts presented in the March Budget.
“The coalition Government must remain focused on eliminating the bulk of the deficit within a parliament, aiming for structural budget balance in 2015-16, delivered through spending restraint rather than tax increases.”
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