The U.K. government borrowing for the previous financial year was less than estimated due to cyclical factors, the Office for Budget Responsibility said Thursday. But these components will disappear as the economy recovers, it said.
"The smaller overestimate of borrowing in our March 2013 forecast for 2013-14 was almost entirely explained by the cyclical component of borrowing being lower than expected, in other words the element that will disappear as the economy recovers," it said.
The March 2013 borrowing forecast error for 2013-14 was a GBP 12.1 billion over-estimate compared with the latest outturn.
Earlier this week, OBR Chairman Robert Chote said income tax receipts are likely to fall short of the government's target for the current financial year despite record employment.
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