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The UK is running a budget deficit. But what is it? Basically, it’s when the amount the country needs to spend is more than the money it brings in. To make up the difference, the Government borrows money from financial markets (e.g. pension funds and insurance companies) by selling bonds known as ‘gilts’. A budget deficit has become the norm for the UK, and recently reached a peacetime record because of the pandemic. | Barclays UK
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