The UK's finances have plunged more than £1 billion sterling further into the red than the British Chancellor of the Exchequer Gordon Brown forecast in his Budget speech.
Public sector net borrowing at the end of March hit £25.2 billion for the financial year to date, according to the Office for National Statistics.
That compares with Mr Brown's Budget prediction of £24 billion, and with a surplus of £0.4 billion for 2001/02.
In his April 9th Budget speech, Mr Brown forecast net borrowing would rise to £27 billion in the current 2003/04 fiscal year before dropping back to £24 billion the following year.
But City economists have cast doubt on his claims and predict the numbers will come in higher, with Government spending running above forecasts.
Data from the ONS also showed the budget deficit for the month of March was £8.1 billion, up sharply from the £3 billion deficit in March last year. The public sector net cash requirement, which highlights the Government's cash position rather than its underlying fiscal health, came in at £11.1 billion for March, £3.3 billion higher than in March 2002.
In 2003/4 and 2004/5 the Chancellor expects borrowing to reach £27 billion and £24 billion respectively, whereas CEBR sees the figures reaching £29 billion and £32 billion.
The worse-than-expected figures are due to spending running higher than the Government had forecast.
Growth in tax receipts has been muted over the last year while the Government's expenditure has increased by over £5 billion.
Around £2 billion of cash was earmarked to fund the UK's contribution to the war in Iraq. Some growth in expenditure was expected, with the Government setting aside more cash for improvements to the public services.
PA