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Wall Street economists expected borrowing to slide by only $1 billion, according to a survey by Thomson Reuters.
Economists polled by Reuters had expected borrowing of only £12.1bn.
The upshot was weaker growth, lower than expected tax revenues and higher than expected borrowing.
The change in heart on tax credits was washed over as simply a decision taken in response to better than expected borrowing figures, with the total coming in at £8bn less than anticipated.
When considering the scope for permanent net giveaways in the Autumn Statement, what matters is the extent to which any reduction in borrowing this year feeds into lower expected borrowing in future.
That means that if the Office for Budget Responsibility OBRR) declares the fiscal target cannot be met because of higher than expected borrowing, the Lib Dems will oppose adjusting the government spending plans.
Similar(50)
So the government expects borrowing for the rest of the parliament to be negligible.The government claims that its finances are underpinned by cautious assumptions.
Since the OBR expects borrowing to be about 11% lower this year than last, the fiscal consolidation appears to be slightly off track.
The OECD expects borrowing costs to settle down at about 4.5% in the new normal, similar to their level in the 1990s.If capital is costlier, companies will economise on it.
And while you expect borrowing to expand when money is cheap, you also expect there to be some connection between the risks people take and the rewards they reap.
The IFS expects borrowing in 2010-11 to be £7 billion below the Treasury's forecast of £176 billion, resulting in a deficit of 11.5% of GDP rather than 12%.Yet so monumental are the deficits that these reductions merely chip away at the task awaiting Mr Osborne if he becomes chancellor this spring.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com