Budget 2014: Borrowing forecast cut to £95bn

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The UK's borrowings have fallen to £95bn in 2014/15, undercutting previous expectations, the Chancellor has said.

George Osborne said the public borrowing figure for 2014/15 is slightly lower than the Office for Budget Responsibility's (OBR) December forecast of £96bn.

Borrowing for 2013/14 of £108bn is also lower than previous OBR predictions. 

Estimates for the following years have also been revised downwards. The government expects to borrow £75bn in 2015-16, £44bn in 2016-17 and £17bn in 2017-18. All forecasts are significantly below the OBR's December forecast.

After a year of recovery, borrowing estimates have been consistently falling.

Borrowing for 2013-14 is due to be more than £8bn lower than the OBR's March forecast and £3.8bn lower than in 2012-13.

But despite the fall, borrowing remains well above the Coalition's predictions when it took power in 2010. An emergency Budget that year predicted borrowing of just £37bn in 2014-15. 

Last year's more realistic Budget predicted public sector net borrowing for 2013-14 (excluding the Royal Mail pension fund and Asset Purchase Facility transfers) of £120bn, followed by £108bn in 2014-15. 

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