The Chancellor of the Exchequer for the U.K. has unveiled the budget for the coming year against a gloomy economic backdrop, which included some sweeteners to dull the pain of public spending cuts, according to Bloomberg. On Wednesday, George Osborne made public the government budget for the 2011-2012 fiscal year, and confirmed that he would stick to austerity plans that had been promised previously, committing to “reform the nation’s economy,” although avoiding increasing taxes on Britons.

The budget will include a borrowing forecast of £122 billion, which is lower than the target of £146 for the current fiscal year, but more than the prior forecast of £117 billion. Borrowing is projected to fall to £101 billion and then £70 billion in the years that follow. The budget comes as recent economic data suggest the recovery is stagnating, and show that inflationary pressures are continuing to mount. The Office for Budget Responsibility revised its estimate for 2011 gross domestic product growth to 1.7% from 2.1% previously, before accelerating to 2.5% in 2012 and 2.9% in 2013.

Click here to read the story from Bloomberg News.

Click here for coverage of the key budget points from The Daily Telegraph.