Operations Management Case

4 Fiscal policy conomic ontogenesis is the prerequisite for reduction poverty and up livelihoods. By offsetting the effects of the business cycle, countercyclical monetary policy contributes to crop and job creation. When the economy is doing well, the figure sense of equilibrium improves to build pecuniary blank, limit increases in the cost of financial backing and counteract inflationary pressures. When the economy is underperforming, political relation al ruggeds the develop start up balance to deteriorate, using the monetary space built up beforehand to fund phthisis and disturb economic activity. Owing to sound management of the fiscus during the antecede sextet years of strong economic growth (2002-2007), presidency entered the 20082009 recession with healthy creation finances and a relatively low level of debt. This allowed for a flexible response to deteriorating economic conditions. outgo increased to reinforce the social security sugar during a period of exceptional hardship for many southmost Africans, and provided an economic stimulus through the infrastructure programme. To ensure that public expenditure is not crowded out by an ever-rising worry burden, government debt demand to be managed sustainably. Longterm fiscal planning, predictable actions and thinkable policies bring forth confidence in the future of the economy.

South Africas mightiness to continue building roads, schools and hospitals will depend on how quick the economy grows, the long-term level of spending, and the choices made approximately financing social programmes. The projected calculate shortage in 2010/11 is R142.4 billion, or 5.3 per cen! t of GDP. As economic growth strengthens, and assess revenue recovers, government will reduce the budget deficit gradually to 3.8 per cent of GDP by 2013/14. E Overview The countercyclical fiscal stance contributes to economic growth and job creation establishment debt needs to be managed sustainably 49 2011 BUDGET REVIEW The budget framework Table 4.1 summarises the medium-term budget...If you want to get a full(a) essay, order it on our website: BestEssayCheap.com

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