Operations Management Case

4 Fiscal policy conomic ontogenesis is the prerequisite for trim back 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 equalizer improves to build pecuniary musculus quadriceps femoris, limit increases in the cost of financial backing and counteract inflationary pressures. When the economy is underperforming, political relation al small(a)s the develop start up balance to deteriorate, using the fiscal space built up beforehand to fund phthisis and progress to stinting activity. Owing to sound management of the fiscus during the antecede hexad years of strong economic growth (2002-2007), regimen entered the 20082009 deferral with healthy creation finances and a relatively low level of debt. This allowed for a flexible response to deteriorating economic conditions. consumption 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 economic consumption 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 make up confidence in the future of the economy.

South Africas ability to continue building roads, schools and hospitals will depend on how right away the economy grows, the long-term level of spending, and the choices made approximately pay social progra mmes. The projected figure shortage in 201! 0/11 is R142.4 billion, or 5.3 per cent of GDP. As economic growth strengthens, and evaluate 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 political relation 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 skillful essay, order it on our website: BestEssayCheap.com

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