Operations Management Case

4 Fiscal policy conomic ontogenesis is the prerequisite for cut back poverty and up livelihoods. By offsetting the effects of the business cycle, countercyclical pecuniary policy contributes to crop and job creation. When the economy is doing well, the figure correspondence improves to build pecuniary pose, limit increases in the cost of funding and counteract inflationary pressures. When the economy is underperforming, political relation al gloomys the bud start up balance to deteriorate, using the pecuniary space built up beforehand to fund phthisis and call down frugal activity. Owing to sound management of the fiscus during the antecede cardinal years of strong economic growth (2002-2007), authorities entered the 20082009 ceding back with healthy creation finances and a relatively low level of debt. This allowed for a flexible response to deteriorating economic conditions. expense increased to reinforce the social security sugar during a period of except ional hardship for many southmost Africans, and provided an economic stimulus through the infrastructure programme. To ensure that public ingestion 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 form confidence in the future of the economy.

South Africas mogul to continue building roads, schools and hospitals will depend on how apace the economy grows, the long-term level of spending, and the choices made approximately pay social programmes. The projected cipher dearth in 2010/11 is R142.4 bill ion, or 5.3 per cent of GDP. As economic gro! wth strengthens, and levy 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 regimen 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 entire essay, order it on our website: OrderCustomPaper.com

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