Britain's budget deficit will fall by a bit less than the government originally planned in this financial year and in 2015/16, according to figures announced by chancellor of the exchequer George Osborne on Wednesday.

“(Borrowing) falls slightly less than expected in the first two years but then falls slightly more than expected in the four years after that,” Mr Osborne said as he announced a half-yearly budget update.

Mr Osborne said the budget deficit - based on public sector net borrowing, excluding public-sector banks - would fall to 5 per cent of gross domestic product in 2014/15.

That compared with a deficit of 5.6 per cent of GDP in 2013/14, according to official figures.

Britain’s Office for Budget Responsibility had forecast that public borrowing would fall to 4.9 percent of GDP in the current financial year, according to estimates it made in March.

Reuters