The nation’s budget got a huge gaping hole as a result of COVID-19 epidemic. The world economy wasn’t in perfect shape even before the bug broke through. Now it is in terrible shape.
The British budget deficit is widening as a result of the corona crisis, in particular due to London’s urges to stem the crisis. For the first time since 1963, public debt exceeds 100 percent of gross domestic product (GDP).
Last month, the amount borrowed by the British state stood at over 55 billion pounds, the British statistics agency reported. This brings the total to £ 103.7 billion since the start of the fiscal year in April.
The budget deficit is expected to widen further as the government pays wages for nearly 12 million British. In addition, the costs of tax benefits and possibly also of infrastructure projects.
The US state’s alleviation in April and May is the highest ever. Even during the low point of the financial crisis, this counter never exceeded £ 22 billion. Net debt, including support from the Bank of England, reached 100.9 percent of GDP.