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UK's Darling raises 2009/10 borrowing forecast to record

Published 04/22/2009, 08:04 AM
Updated 04/22/2009, 08:08 AM

LONDON, April 22 (Reuters) - British finance minister Alistair Darling upped his forecast for government borrowing to a record 175 billion pounds in 2009/10 on Wednesday, as he admitted the economy was in its worst shape since World War Two.

The borrowing projections for the current year were above analysts' forecasts for a deficit of 160 billion pounds and well in excess of the 118 billion pounds Darling estimated in his pre-Budget Report last November.

Darling predicted borrowing of 173 billion pounds in 2010/11 -- up from a 105 billion estimate in November -- and borrowing needs of 140 billion in 2011/12.

"As a share of GDP, our borrowing will be 11.9 percent of GDP next year, and then, as we move towards balance, 9.1 percent in 2011-12, then 7.2 percent and 5.5 percent in 2013-14," Darling told parliament in his budget address. (Editing by Mike Peacock)

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