fiscal policy - fed. budget (1 Viewer)

[lilkiwicutie89]

heys...
im having trouble with my assemetn task .. its on the budget.. yeahh im still not sure about the headline cash balance / underlying cb and the fiscal balance.. i got the figures but they are confuinf and i dont get the concepts

thanks

 

[Sarah168]

·Headline cash balance shows total cash outlays less total cash receipts and shows by how much government debt will be increased or decreased

·Underlying cash outcome is calculated as total revenue less total outlays plus net advances. This figure only measures cash item, not items which will occur in future year s It is the best indicator of the short term impact of fiscal policy on the economy.

·Fiscal Outcome is calculated the same way but uses a different accounting method which includes future payments that have not taken place. It is the best indicator of the long term fiscal strategy because it counts expenditure or liability from the day the transaction occurs

 

[lilkiwicutie89]

thanks.. and how would you describe short/ meduim and long term??

thanks

likiwicutie89