This can be done only if the information received by the decision makers like Chancellor Brown will not be poor, lacking or far from the actual figures. One very good strategy is the United Kingdom government to make most government transactions with its constituents and other nations TRANSPARENT. One very good government strategy is the United Kingdom’s efforts to sell some of its idle assets which are recommended by the different departments. The different departments of the government is given a free hand to determine whether to maintain, reduce or increase the next accounting period’s budget.The government must continue its budgeting process by prioritizing its expenditures to health, infrastructure and the educational system, among other priority projects. Each department of the United Kingdom Government must be thrifty in its purchases and payments. This means that all unnecessary wastes of office supplies, electricity, light and water, telephone and other expenses must be minimized to the level of “necessary” and not “regular” expenses."necessary" and not "regular" expenses.
The golden rule of government spending is for the United Kingdom government to limit the output or expenses to the inputs or resources. The government must also be complacent and continue its present sustainable fiscal policies.
One of the major government moves is to target the annual inflation rate. There are many factors that affect inflation. Ordinary lay people interpret inflation as the monthly or even weekly increase of daily needs of man like food, clothing, and shelter.
It is generally a persistent and readily felt rise in the prices of prime commodities. This rise in the prices of daily commodities results in the lower value of the monetary currency.
The inflation rate can be triggered and increased by other factors like the unemployment rate, the gross domestic product, and other factors. The government now has to print more paper money because now the ordinary lay people need more paper currency to pay for the once lower priced basic goods like milk, fish, and others. The present rapidly expanding United Kingdom economy(Wormell, 2000) has contributed much to affect the inflation rate of the state. In an inflationary situation, the man on the street will have to spend more money to get the same quantity of basic needs they consume during the previous years. The United Kingdom must therefore constantly watch and take necessary steps to keep the prices of basic necessities or goods at stable, if not permitted to be lowered, prices.
The present open policy of the United Kingdom government has helped much in alleviating the tight economic situation prevailing within its territories. The present increase in the unemployment situation has contributed to the inflation of goods. The daily moves of the Parliament and Chancellor Brown will also trigger the increase or decrease of the inflation rate.
The present government is presently implementing the four principles of macroeconomics(Fleetwood, 1999) of the government which are (a) Principle of stability through constrained discretion, (b) Principle of credibility through sound long term policies, (c) Principle of credibility through maximum transparency and (d) Principle of credibility through commitment.
Statements and Budgets
The budget for the fourth quarter of the coming year 2007 is shown in Exhibit A below.
The fourth quarter 2007 budget is based on the third quarter 2005 actual data taken.
For the 4th quarter, 2007, the Gross Domestic Product at current market prices is 333.52 billion pounds whereas the households have 209.88 billion pounds. The