Keywords: fiscal policy, federal debt, interest costs, debt-GDP ratio
, health costs, entitlements
Legislative decisions are required to avoid the fiscal cliff in 2013 due to the scheduled expiration of tax cuts and automatic spending cuts, while further reducing the federal budget deficit at a gradual pace so as to put the federal debt-GDP ratio
on a downward path and restore fiscal sustainability.
On these figures, the gross debt-GDP ratio
would fall beyond 2013 but the net debt-GDP ratio
stays above 100 per cent out to 2015.
During the 1990s, the annual average debt-GDP ratio
had risen to 41.
Under conservative assumptions regarding growth and interest rates, and if fiscal and structural reforms are fully implemented, the debt-GDP ratio
could peak in 2013 and fall below 60% of GDP in the next two decades.
This would immediately stabilise the debt-GDP ratio
and then reduce it to levels close to those before the 2008 crisis.
As this survey is being written, the deficit on current budget is forecast to exceed 9 per cent of GDP and the debt-GDP ratio
is headed for over 75 per cent.
Thailand has seen one of the sharpest surges in household debt in the region, with the debt-GDP ratio
rising from 60 per cent to 85 per cent over the past five years," Krystal Tan, an analyst with Capital Economics, told AFP.
8 per cent of nominal gross domestic product) and low debt-GDP ratio
Cameroon has a debt-GDP ratio
of 18% while the CEMAC zone s threshold is set at 70%.
9 and India's external debt has remained within manageable limits as indicated by external debt-GDP ratio
The UK debt-GDP ratio
almost doubled over the same period of time.