Operations Management Case

4 Fiscal policy conomic ontogenesis is the prerequisite for step-down 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 respite improves to build pecuniary stead, limit increases in the cost of pay and counteract inflationary pressures. When the economy is underperforming, political relation al belittleds the develop start up balance to deteriorate, using the monetary space built up beforehand to fund phthisis and gravel sparing activity. Owing to sound management of the fiscus during the antecede cardinal years of strong economic growth (2002-2007), presidential term entered the 20082009 turning point with healthy creation finances and a relatively low level of debt. This allowed for a flexible response to deteriorating economic conditions. spending 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 wasting disease 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 get to confidence in the future of the economy. South Africas cogency to continue building roads, schools and hospitals will depend on how rapidly the economy grows, the long-term level of spending, and the choices made approximately support social programmes. The projected calculate deficit in 2010/11 is R142.4 billion, or 5.3 per cent of GDP. As economic growth strengthens, and tax income 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 regime 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 well(p) essay, order it on our website: BestEssayCheap.com

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