The UK sank into the red by £15.9 billion sterling last month during the worst August for public sector borrowing on record, official figures showed today.
The bigger than expected figure left borrowing in the first five months of the financial year at £58.1 billion, the Office for National Statistics said.
The release of today's figure, which was higher than the £14.1 billion a year ago, comes a month before Chancellor George Osborne sets out his austerity plans in the comprehensive spending review on October 20.
The independent Office for Budget Responsibility is expecting borrowing of £149 billion for the financial year as a whole - down from £155 billion in 2009-10.
Analysts said August's public borrowing figure - the highest since records began in 1993 - dented hopes that the fiscal position is on a clearly improving trend.
August is usually a demanding month as corporation tax receipts do not tend to feature strongly, and this year's August was no exception, the ONS said.
Today's figures did show some signs of recovery, however, with tax receipts of £37.1 billion - up £2.2 billion on a year earlier. The tax take was up 6.3% on a year earlier.
There was also a downward revision to net borrowing for April to July this year by £2.7 billion.
This was largely due to a downward revision of central Government expenditure, and an upward revision of accrued receipts from the bank payroll tax, the ONS said.
