Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

The Problem of the UK Budget Deficit - Coursework Example

Comments (0) Cite this document
The author of this coursework called "The Problem of the UK Budget Deficit" describes the notion of the budget deficit. This paper outlines negative government savings, historic background of the economy problem and ways how to overcome the deficit, …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.9% of users find it useful
The Problem of the UK Budget Deficit
Read TextPreview

Extract of sample "The Problem of the UK Budget Deficit"

Download file to see previous pages The government debt increases due to budget deficits do no good but instead create complex problems for the economy and it drags the economy further away from growth. This is especially in the case of underdeveloped economies as they are worse-off by such a situation. On the other hand, developed countries do have a cushion against such problems and endure the effects by strictly controlling inflation through monetary policy.
In the case of developing economies, they have lesser reserves to back their position, while being more productive they still run continuous deficits (Charles, 1995). This invokes further activity, owing to the fact that the economy is below its potential output but usually is not managed adequately and thus results in demand-pull or cost-push inflation in different circumstances, and hence these developing countries are seldom able to reap the benefits of their economic activity.
The budget deficits are rooted from the time of the great depression of the 1930s which was witnessed by and had a strong influence on many economies worldwide before the Second World War though there were numerous reasons for the Great Depression beginning in 1929, including not only the structural weaknesses but also a series of certain other events.
The declining demand in the economy laid down pressures on government and whilst they had to manage the decline in economic activity, the government expenditures eventually increased to accommodate these problems thus putting burdens over the budgets and eventually running deficits (Bernanke, 2007). Another reason stated had been the decline in international trade thus affecting many countries of the world whose economy depended on international transactions. As stated by one of the famous analysts, the chain of events proceeded as follows (Fisher, 1933):
Thus when the freehand didn’t work out, the government started to play a pivotal role in the economic activity for the country and economies started to kick off guided by a Keynesian approach. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(The Problem of the UK Budget Deficit Coursework - 1, n.d.)
The Problem of the UK Budget Deficit Coursework - 1.
(The Problem of the UK Budget Deficit Coursework - 1)
The Problem of the UK Budget Deficit Coursework - 1.
“The Problem of the UK Budget Deficit Coursework - 1”.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Problem of the UK Budget Deficit

Term Paper on Budget Deficit

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... Information Budget Deficit Introduction The term deficit simply refers to a situation where liabilities exceed assets, expenditures exceed income, losses exceed profits, or imports exceed exports. Generally, budget deficit occurs at governmental levels and this term could be defined as the amount by which government revenues fall short of government spending. The 2008 global financial crisis and subsequent recession caused many countries to close their fiscal period with a budget deficit, and its effects are ongoing. There are two different concepts associated with government budget deficit including primary deficit and total deficit. The primary deficit indicates the ...
8 Pages(2000 words)Term Paper

Sharpe's Budget Problem

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... Sharpe’s Budget problem College Outline Cash budget Workings s cash collections s – 2 collections s – 3 purchases payments Payment of notes payable of $ 200,000 Reference List Cash budget A budget is a detailed cash inflow and outflow statement that outlines the estimated expenditure and cash collected. The cash budget should include the all the costs likely to be paid and cash to be received (Crosson, Power, and Needles, 2011). The direct cost are the expenses incurable which are directly associated with the revenue sources, and/or can be directly apportioned to that source of the revenue with a high degree of accuracy. The cash budget should be monitored closely so...
3 Pages(750 words)Essay

Federal Budget Deficit

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... “Federal budget deficit” A budget deficit refers to the amount by which a company, individual or a government’s spending exceeds its income over a given period. It can be called a deficit or a deficit spending. Most governments across the world experience deficit budgets because of several reasons. 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). This paper intends to discuss the significance,...
5 Pages(1250 words)Essay

Efforts to Reduce the Budget Deficit

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... Efforts to Reduce the Budget Deficit Details: al Affiliation: Efforts to Reduce the Budget Deficit It is now in the history books; the US debt crisis got even worse under the stewardship of the current regime to outstrip the gross domestic product (GDP) by over 100 percent in the year 2012, three years after surpassing the $1 trillion mark for the first time, all courtesy of a worldwide financial crunch that originated in our very own backyard (Thornton, 2012). 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...
3 Pages(750 words)Essay

The federal budget deficit

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... Research Report By: 10th Nov, Federal Budget Deficit The budget deficit occurs when government’s spending outweighs its outlays. The deficit results in a national debt that needs to be borrowed and steps need to be taken in order to reduce the future deficits. ‘The public debt, which is sometimes called the federal or the national debt, is the total amount the federal government owes its creditors.’ (Arnold, 2008) The reduction strategy for budget deficit involves decreasing the public expenditure or increasing taxes or a combination of both. The US budget picture has evolved through leaps and bounds. The current federal deficit for the government went down by 37%...
4 Pages(1000 words)Research Paper

UK Budget Hotels

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... Hotel Sector Budget hotels are hotels which are meant to provide conventional hotel services at low cost, they target in providing affordable services to customers. The hotels offer services such as accommodation and breakfast for guest who book at the hotels. It has been noted that, in the current years, the model of a "budget hotel" in the U.K. has changed so that presently lots of these low cost hotels are nearly indistinguishable from a lots of their more upmarket and expensive counterparts. (Hotel benchmark, 2002) Budget hotel sector According to industry observers, the budget industry in the UK is poised to increase more than twice its present size in the comi...
14 Pages(3500 words)Case Study

A Budget Deficit in the Company

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... Week 5 – DQ 100 – 150 words) How has the growing importance of the global economy affected your organization’s competitiveness? How has your organization responded to this? What recommendations do you have for the firm to improve its strategic decision-making? The growing importance of global economy is very much felt on how our business organization strive to evolve to become more efficient in carrying out its daily operation. This of course, started with the company’s increasing concern in strategic decision making in the form of a more intensive and extensive market environment scanning. Recognizing that economies are fast becoming more integrated and consolidate...
2 Pages(500 words)Essay

California's Structural Budget Deficit

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... Structural Budget Deficit California’s structural causes of deficit budget include fraud and wastage in spending. Mismanagement of the state’s revenues and funds compounds these issues. Commentators reckon that the state’s Department of Finance is responsible for presiding over the budget process and that it does not encourage quality systematic review of its spending. Legislative solutions to California’s budget crisis fail because of the high (two-thirds) majority required to pass a budget in both the assembly and senate. California’s electorate is also highly polarized. Through ballot box budgeting, voters approve measures that only serve to constrain the different ...
1 Pages(250 words)Assignment

The Budget Deficit in Oman

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... BUDGET DEFICIT IN OMAN Insert Insert Insert Acknowledgements Special thanks go to the supervisor for his unique assistance and support, advice, guidance and direction during the research process. In addition, much appreciation and remembrance go to the co-supervisors, tutors in both class and field and members of the family for their full dedication and time. All the participants and respondents who had a positive contribution in this study are much appreciated for their ready response and honesty during the interviews and questionnaires. Much appreciation goes to positive critics for the corrections and constructive criticism during research time. Overall vote of...
24 Pages(6000 words)Research Paper

Budget Information Problem

...The Problem of the UK Budget Deficit... The Problem of the UK Budget Deficit... AND ACCOUNTING Budget Information Problem number: Summary The report aims to carry out an investigation on the budget information problem at Metropolitan health care services company, concerned with the delivery of health care of services to the locals. I am the hold the position of an accountant to the company and I was tasked with analysis of the budget information problem with a focus on a framework for problem solving. The investigation is the central issues, budget increment limitations, budgeting information transparency. The analysis from the report is essential in the making of competent decisions by the health care facility. Finally, the report wraps up with ...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic The Problem of the UK Budget Deficit for FREE!

Contact Us