The economic recession which broke out in the middle of 2008 had resulted in a wave of debt in several advanced economies along with the USA. When government spends more money compared to the amount it receives through tax, it requires borrowing to cover the gap. Organisation for Economic Co-operation and Development (OECD) has predicted that government debt will increase seriously by unmaintainable levels in advanced as well as emerging economies within next 25 years. It is estimated that the standard principal deficit in the USA will be 2% of total Gross Domestic Product (GDP) in 2015 and will increase to 7.7% of total GDP by 2035. The baseline debt of the USA was 65% of total GDP in 2010, which is estimated to become 213% by 2035 (Gagnon & Hinterschweiger, 2011). Budget deficit occurs when government expends excess amount compared to what it gains through taxation. The opposite term of budget deficit is budget surplus when the outgoings are less than the receiving amount (Investopedia ULC, 2011). Even few years back, the US had budget surplus but due to the impact of the crisis in present days the US economy is running with budget deficit of 10% on GDP. It is expected that the budget deficit will decrease to 7% of GDP and by 2017 the government will seek to reduce the budget deficit to 3% of GDP (Paletta & Boles, 2011). Deficit reduction plan is helpful for advanced economies to deal with the economic recession. Several nations have implemented the debt reduction strategy to maintain a justifiable fiscal budget and to reduce the debt. Deficit reduction strategy can result in change of major economic and monetary players. It can help to achieve prospects of creditors which can ultimately reduce the financing budgets. It can be achieved by minimizing risk premium through ‘higher long-term interest’ (OECD, 2010). Deficit Reduction in Greek Government The Greek government had followed the deficit reduction plan in order to reduce their huge amount of deficits. In the year 2009, the deficit of Greece was 15.4% of GDP. The government of Greece had estimated a deficit of 9.4% in 2010. In order to reduce the deficit, Greece had adjusted its economic settings. The objective of deficit plan of Greece is to reduce government budget by decreasing expenses on public pays, annuities on public as well as private segments, and raise the revenue by increasing the rate of Value Added Tax (VAT), and taxes on gasoline, alcohol, and tobacco products. Greece’s deficit plan was to receive financial support from the EU nations and International Monetary Fund (IMF). Through this financial support, it is estimated that Greece can improve the economic growth and reduce the debt crisis. But, the deficit plan can have certain negative impacts on the economy. Reducing the monetary expenses can lead to fall on value of currency and stock market. Increasing taxes can also harm the lifestyle of people and can impact on the demand of products which may increase the problem of crisis. However, those who support the deficit plan say that delay in consolidating debt can worsen the economic condition even further (McCully & Webb, 2010). Deficit Reduction by Irish Government The debt crisis of Ireland is not similar as Greece, as it did not occur due to excess expenditures; rather it had occurred due to promising housing bubble in certain Irish banks. In order to crush budget deficit, Irish government had developed
The economic recession which broke out in the middle of 2008 had resulted in a wave of debt in several advanced economies along with the USA. When government spends more money compared to the amount it receives through tax, it requires borrowing to cover the gap. …
According to the essay, the deficit financing is good during crisis times to bring the economy out from stagnation but harmful if it is employed in a sustained basis year after year for the unproductive causes. Still, the underlying causes for which deficit budget is made certainly matter, regardless of the state of the economy.
It is imperative that the government’s deficit is mainly financed by borrowing from the public through selling of bonds. In addition it can b financed by borrowing from the central bank. There are diverse budgetary deficits, which include revenue, budgetary, fiscal, primary and monetized deficits (The Moment of Truth, 7).
Though with deep roots in history, upping the tempo in the early 1970s due to the non-proportional increases in government spending relative to the increases in tax revenues, the recent surges in the debt burden are, however, the result of extreme measures taken to mitigate the effects of the deep and prolonged recession that kept the nation on its toes with a non-convincing recovery pace.
Yet, a growing economy requires an ever-increasing amount of money, and without it the economy would grow stagnant and refuse to grow. Government spending, and government debt, does have the capacity to fuel the economy, but there are also other factors that need to be considered.
This discussion not only highlights these laws around the world that have helped to make public sector enterprises more transparent but also provides recommendations for more effective legal framework to enhance the functioning of fiscal and budget procedures and processes.
These facets include the psychosocial and the behavioral aspects that are often considered as important faculties of the individual to communicate with others (Jensen, Kettle, Roper, Sloan, Dulcan, Hoven, et al., 1999).
Another main concern in the study of the ADHD is the fact that mostly children are affected although there are cases that are also present in adults.
A good understanding of the psychosocial factors influencing ADHD is needed to understand this disorder and then to implement health care practices. A discussion of these factors is presented in this essay and the need for knowledge of these aspects for effective health care is assessed in the paper.
Specially, ADHD in adults is an underestimated; to some extent even 'hidden' problem. More commonly ADHD affected adults are viewed as "lazy" or "unmotivated" by other people in their lives. Further more the symptoms are often obscured by problems with relationships, organization, mood disorders, substance abuse, employment or other psychological difficulties.
The concept of deficit financing is well adhered to mainstream Keynesian economics. This in turn stimulates the aggregate demand increasing the aggregate output and hence enhancing employment within the
etion of the modernization shows that in the first three months the company faced a cash deficit, followed by a cash surplus for the next three months.
First, the question is to understand why a cash deficit occurs. The main reason is that not enough cash is available to cover
4 pages (1000 words)Essay
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