Government borrowing could be 'under £150m' for this year

Government forecast for £178bn in last year's budget which it then used to provide figures showing how they would halve it in four years.

However, a promising start to their spending figures may reduce the actual amount they need to save in four years quite considerably.

If government spending for this financial year ends at £150bn, then they would need to save just £75bn over the next four years, as opposed to £89bn forecast.

The government's promise to decrease spending has come under pressure from the Opposition who say that it will end up causing more harm if they don't cut now, instead of later.

Until recently, analysts though the government's borrowing was too optimistic, but after today's figures they may reconsider:

"The figures leave a total deficit for the first 11 months of the year of £132bn, suggesting that Mr Darling may now hit or even undershoot his full-year forecast." said Jonathan Loynes at Capital Economics.

"February's public finances figures have provided [Chancellor] Alistair Darling with a very timely boost ahead of next Wednesday's Budget," he added.