UK Budget Deficits

April’s fiscal stimulus is likely not about to happen following a budget deficit of 12.6% of GDP. This figure is far
higher than what was predicted by the Chancellor Alistair Darling. Darling announced that an 8% GDP rise in borrowing was expected over next year. This amounts to 118 billion pounds. As a result, the April budget will have to be upgraded. Public finances are deteriorating rapidly and eating up on tax revenues and the surge in employment has also come about with a sharp increase in benefits payments. February experienced the biggest budget deficit on record that saw the public sector net borrowing amount to almost 9 billion pounds. This is 8 times higher than what it was a year ago. Credible forecasts will thus be needed in order to restore the health of public finances.

Posted by Shue on May 2nd, 2009 :: Filed under Uncategorized

Egg Pensions remain after the sale

Despite the internet bank Egg changing hands from Prudential to Citigroup, Citigroup intends to retain the
bank’s name but offer much wider range of services to its UK clients than what Prudential was previoulsy
able to offer. Citigroup claims that its experience in lending and its ideal credit histories will ensure
that Egg will become profitable in short order. As part of the sale, Egg customers will continue to receive
pensions and life assurance products from prudential for another 5 years after which Citigroup is expected to
distribute life assurance products to parts of Asia.