B.2 As set out in Table 4.25 of the Office for Budget Responsibility's (OBR) November 2011 Economic and fiscal outlook (EFO), the revised forecast for the 2011-12 central government net cash requirement (CGNCR) is £135.0 billion, an increase of £14.6 billion from Budget 2011. The relationship between public sector net borrowing (PSNB) and the CGNCR is set out in Chapter 4 of the OBR's November 2011 EFO.
B.3 The net financing requirement (NFR) comprises the CGNCR, plus any financing required for gilt redemptions and for additional Official Reserves, less the net contribution to financing from National Savings and Investments (NS&I). The NFR for 2011-12 is projected to be £178.5 billion. This represents an increase of £13.8 billion on the NFR projected in April 2011. This increase mainly refects:1
• an increase in the forecast for the CGNCR in 2011-12 of £14.6 billion, which includes a net increase in financial transactions which do not score to PSNB, worth around £10 billion in total. The most significant of these is an increase of around £6 billion in net lending between central government and the rest of the public sector primarily reflecting revised assumptions about local authority financing of one-off transactions relating to Housing Revenue Account (HRA) reforms. Further detail on these financial transactions is set out in Chapter 4 of the OBR's November 2011 EFO; and
• an increase of £1.0 billion in the forecast net contribution to financing in 2011-12 from NS&I.
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1 The revised 2011-12 NFR includes an additional £0.1 billion reflecting a revision to the 2010-11 CGNCR outturn.