The Conservative government of UK has experienced its wildest shortfall in funding since 2012.
The Office for National Statistics (ONS) said a fall in income tax receipt sent UK’s deficit spiraling to £12.1 bn in August.
The situation will put pressure on Chancellor of the Exchequer George Osborne ahead of tough expenditure decisions in November.
Analysts say a fall in self-assessment receipts was behind much of the fall in the Treasury’s tax income after a bumper month of self-employed payments in July.
The ONS said however this changing pattern of payments by the self-employed was unexpected as August usually enjoys a large spillover of tax receipts from the previous month.