During Tuesday's meeting of ECOFIN, the Council of the EU Finance Ministers, a decision was made to press Bulgaria, Denmark, Cyprus, and Finland to cut their budget deficit
First among these measures--and the one meaningful action the Administration and Congress can undertake in short order--is to forge a serious and workable plan to reduce the federal budget deficit
over the next five years, and the trajectory of future deficits
going further forward.
The trend suggests that the overall deficit
could be around $15bn by the end of 2017-18 if the current trajectory persists.
These figures are startling and negate the federal government's claim that it has reversed the trend of the last fiscal year when the budget deficit
peaked to a historic high of Rs1.
has been occurred from the goods and services sector.
Decline in services deficit
has also led to plunge in current account deficit
The balance of payments posted deficits
in January 2007, 2008, 2010 and 2011.
The Commission concluded that on the basis of currently available information Cyprus, Finland, Bulgaria and Denmark have taken action representing adequate progress toward the correction of the excessive deficit
," it said in a statement.
Since joining the EU in 2004, the government of Hungary has been battered by soaring expenditure, made worse by moves to stimulate economic growth in 2006, which pushed the deficit
over 9% of GDP.
the budget deficit
will increase aggregate demand and the domestic real interest rate.
But the savings glut is an independent driver of low global rates, and because the United States tends to have a very interest-elastic response to low interest rates due to the housing sector, it's not surprising that our current account deficit
has grown over this time.
And if he does manage to make the tax cuts permanent, it will add more than $3 trillion to the deficit
over the next ten years.