#1
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Fiscal Space.....?
The term "Fiscal Space" has become fashionable in print media....
Can anyone give a simple explanation to understanding the term. Many thanks |
#2
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Fiscal Space
Quote:
Fiscal space is calculated using an estimated payback mechanism viewing the actual debt to GDP Ratio and government revenues such as taxes. In case of Pakistan, the current Debt to GDP Ratio is 64% and our budget is already deficit. The government can take austerity measures (to get revenues for debt payback) or rely on external financial institutions such as IMF or World bank (which increase debt even more). Pakistan currently has a constrained fiscal space and the government has to follow some measures to pay back its debt and not to go to such point where the international financial institutions become reluctant to give loans. Greece and Japan have zero fiscal Space. |
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Durrani Abid (Saturday, September 10, 2016), qublai khan (Saturday, September 10, 2016) |
#3
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Fiscal space, a concept introduced by the IMF, is defined as the difference between a nation’s debt-to-GDP ratio and the limit beyond which the nation will default unless policymakers take fiscal steps that are outside of anything they have done historically.
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The Following 2 Users Say Thank You to Mig23 For This Useful Post: | ||
Durrani Abid (Saturday, September 10, 2016), qublai khan (Saturday, September 10, 2016) |
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