Jump to content
House Price Crash Forum
blankster

Government Debt Less Than Expected

Recommended Posts

thats funny, the debt is issued by a government dept, you know, bonds out....Im sure they must have had an adding machine error or something, cos counting those bonds they issued must be very hard.

"The Office for National Statistics (ONS) has revised down the amount borrowed by the government last year from £163.4bn to £156bn."

Share this post


Link to post
Share on other sites

http://news.bbc.co.uk/1/hi/business/10136055.stm

So the deficit is £7.4 billion less than was previously thought. Is this the biggest ever miscalculation in financial history? :lol:

Good job they got this revision out in time for the emergency budget, eh? There was Boy George about to cut the public sector by £6bn in next month's emergency budget, and suddenly the public sector ONS realises that the UK deficit is £7.5bn less than they thought. So no need for cuts after all then.

Share this post


Link to post
Share on other sites

One error, two errors more.

It's all blox clearly someone's been seasonally adjusting the wrong way.

Shame they don't have to be open and honest about every penny they spend of our money.

edit: Sod it cut by 6bn still and then claim a 13bn reduction.

Edited by SarahBell

Share this post


Link to post
Share on other sites

Did this come as some kind of shock to anybody. The arguments about state deficits from all sides are being made for political or financial gain. Nobody can seriously expect the UK to default. All the nightmare scenarios being tossed out are there to create an atmosphere in which BIG DECISIONS can be made, which will benefit a small sector of society (the elites) and reduce the entitlements of the middle mass, whilst largely leaving the poor to fester.

The deficit has been talked up as some kind of bogus bogey man which justifies almost anything the incoming Government wants to do, when in actual fact it's still really rather dull and of no consequence to most of us.

Does anybody really care about the National Debt and would anybody actually be so stupid as to try to pay it off rather than have it inflated away over twenty years?

It seems Labour had two choices in late 2008:

1. emergency budget for 2009 - to account for falling tax revenues from recession - slash budget by £100 bn to keep deficit low, resulting in enormous public sector job losses and private sector losses from all the sectors which rely upon public sector contracts/ spending - deepening recession at the time of private sector weakness resulting in 15% drop in GDP for 2009 and unemployment of approx. 4.5 million.

2. borrow money to account for lower tax revenues so that public sector could support the general economy until economy recovers and tax revenues pick up reducing the deficit through a growing economy.

Whatever the Gov. now does with regard to spending or taxation the deficit will decline regardless due to economic growth in the current business cycle.

Government financing is not the same as household financing and it's no good trying to appeal to common sense analogies about tightening belts and not borrowing beyond your means, without recognising that they are being deployed to push forward a political agenda.

Share this post


Link to post
Share on other sites

http://www.independent.co.uk/news/business/news/monthly-borrowing-hits-record-pound10bn-1979208.html

Public borrowing hit £10 billion in April - a record for the month, official figures showed today.

The rise - up from £8.8 billion a year earlier - underlined the scale of the task ahead for new Chancellor George Osborne to tackle the UK's gaping deficit.

But the figure was not quite as bad as the £10.9 billion feared by the City.

The Office for National Statistics (ONS) also revised down borrowing for the 2009-10 year to £156.1 billion - although this is still a record high.

IHS Global Insight's Howard Archer said: "The good news for the new Chancellor is that the public finances data for April saw a continuation of the recent trend of slowing deterioration.

"The bad news for Mr Osborne is that the public finances remain horrible and that he has one hell of a job in front of him."

Total tax receipts were £2.8 billion ahead of the same month last year at £41.2 billion, helped by the economic recovery and VAT returning to 17.5%.

But spending was still £11 billion ahead of the tax take at £52.2 billion.

And yet we have this...

Share this post


Link to post
Share on other sites

The Greek economy is in no way comparable to the of the UK (for lots of reason - size, composition of economy, currency, etc.) and their current plight is in large part a result of concerted attacks by speculators.

The PBR for 2009/10 was forecast at £178 bn originally in early 2009 and was actually £145 bn, £33 billion less - approximately equivalent to the interest payment on the entire national debt.

Should economic growth continue PBR will continue to fall.

As long as the buccaneers remain focused on the Eurozone we'll be okay.

Share this post


Link to post
Share on other sites

So that's why NuLabour didn't fully open the accounts before the election. They would likely have won it if that figure had been headlined just a few days before the election. You know, oooh yet again NuLabour have been so prudent :lol:

Likely it would have swung it enough so that a LibDem/NuLabour coalition would have been just possible.

Cameron will have to come up with something with the Tories review of the economy or for the next 5 years when they are cutting and cutting NuLabour will be able to say each day "The Tory's talked down the UK economy but as we said and the ONS confirmed the economy was in better shape than even we thought and through NuLabour policies."

The thing is that the ONS figures are limited by their definition so that reduction in the deficit figure means nothing in terms of how misleading the general accounts on the economy are and how much off balance sheet stuff there is.

Edited by billybong

Share this post


Link to post
Share on other sites

Did this come as some kind of shock to anybody. The arguments about state deficits from all sides are being made for political or financial gain. Nobody can seriously expect the UK to default. All the nightmare scenarios being tossed out are there to create an atmosphere in which BIG DECISIONS can be made, which will benefit a small sector of society (the elites) and reduce the entitlements of the middle mass, whilst largely leaving the poor to fester.

The deficit has been talked up as some kind of bogus bogey man which justifies almost anything the incoming Government wants to do, when in actual fact it's still really rather dull and of no consequence to most of us.

Does anybody really care about the National Debt and would anybody actually be so stupid as to try to pay it off rather than have it inflated away over twenty years?

It seems Labour had two choices in late 2008:

1. emergency budget for 2009 - to account for falling tax revenues from recession - slash budget by £100 bn to keep deficit low, resulting in enormous public sector job losses and private sector losses from all the sectors which rely upon public sector contracts/ spending - deepening recession at the time of private sector weakness resulting in 15% drop in GDP for 2009 and unemployment of approx. 4.5 million.

2. borrow money to account for lower tax revenues so that public sector could support the general economy until economy recovers and tax revenues pick up reducing the deficit through a growing economy.

Whatever the Gov. now does with regard to spending or taxation the deficit will decline regardless due to economic growth in the current business cycle.

Government financing is not the same as household financing and it's no good trying to appeal to common sense analogies about tightening belts and not borrowing beyond your means, without recognising that they are being deployed to push forward a political agenda.

Wow. Just... wow.

Share this post


Link to post
Share on other sites

Did this come as some kind of shock to anybody. The arguments about state deficits from all sides are being made for political or financial gain. Nobody can seriously expect the UK to default. All the nightmare scenarios being tossed out are there to create an atmosphere in which BIG DECISIONS can be made, which will benefit a small sector of society (the elites) and reduce the entitlements of the middle mass, whilst largely leaving the poor to fester.

The deficit has been talked up as some kind of bogus bogey man which justifies almost anything the incoming Government wants to do, when in actual fact it's still really rather dull and of no consequence to most of us.

Does anybody really care about the National Debt and would anybody actually be so stupid as to try to pay it off rather than have it inflated away over twenty years?

It seems Labour had two choices in late 2008:

1. emergency budget for 2009 - to account for falling tax revenues from recession - slash budget by £100 bn to keep deficit low, resulting in enormous public sector job losses and private sector losses from all the sectors which rely upon public sector contracts/ spending - deepening recession at the time of private sector weakness resulting in 15% drop in GDP for 2009 and unemployment of approx. 4.5 million.

2. borrow money to account for lower tax revenues so that public sector could support the general economy until economy recovers and tax revenues pick up reducing the deficit through a growing economy.

Whatever the Gov. now does with regard to spending or taxation the deficit will decline regardless due to economic growth in the current business cycle.

Government financing is not the same as household financing and it's no good trying to appeal to common sense analogies about tightening belts and not borrowing beyond your means, without recognising that they are being deployed to push forward a political agenda.

You forgot .. PRINT!

Share this post


Link to post
Share on other sites

Wow. Just... wow.

The way I see it is this government spending to mask or dampen a recession will only work if a lot of attention is put into creating new PRODUCTION to replace the PRODUCTION that was lost.

In 2001 when Brown decided to go nuclear with easy credit, things would have worked out ok if they had also made sure that the private sector recovered properly after the dot com bust.

Instead most of the PRODUCTIVE sectors of the economy spent the 'boom' years collapsing. We lost a million manufacturing jobs over that period.

Even the tory policy of creating lots of hairdressers did this.

Brown just didn't seem to get that you can't go on fudging the books to pretend everything is alright forever, you actually have to fix the underlying economy and not just the headline spending figure.

Share this post


Link to post
Share on other sites
Guest sillybear2

Thank god the Red Team are no longer in charge, an extra £7.4bn would be borrowed or taxed and 'invested' so we 'keep money in the economy'.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.