Britain's fiscal problems
Britain's public sector deficit in the 1990s has been much too large to allow the public sector to maintain its balance sheet position. In order to do this the current account deficit has to be reduced from its 1995/6 figure of 3_ per cent of GDP to close to zero. Government plans show this being achieved by 1999/2000. A comparison of the current position with past behaviour shows that the deficit is unusually high, after due account is taken of the state of the economy and of electoral influences on the public finances. The high deficit is a consequence of unusually high spending rather than low taxation and the position has worsened since Britain left the ERM. The National Institute model allows us to compare with our base run a situation in which public finances evolve in line with past behaviour. This reduces consumption in the 1990s but raises it after 2000. An internal real rate of return of 3.85 per cent p.a. equates the current value of the two consumption paths. On the other hand the level of employment is considerably higher in the early stages of our base run and only slightly lower in the later stages.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Feb 1997|
|Contact details of provider:|| Postal: 2 Dean Trench Street Smith Square London SW1P 3HE|
Web page: http://niesr.ac.uk
When requesting a correction, please mention this item's handle: RePEc:nsr:niesrd:224. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Library & Information Manager)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.