- By Wayne Rodrigo
- (General Dispatch) – The London AP reported that the budget deficit of Great Britain has increased since the beginning of the Chinese coronavirus pandemic.
- Studies have revealed that it is the second highest deficit the country has had since the Second World War, the indebtedness the nation has had has been high for the implementation of different projects while maintaining the restrictions of covid-19.
- The national statistics institution said that the indebtedness is 420 billion dollars, which is equivalent to 14.5% of the country’s annual gross domestic product.
- One of the simplest reasons is that tax revenues have decreased drastically, as people who could not move to their jobs still received their salary payments through the government.
- Isabel Stockton, a research economist at the Institute for Fiscal Studies said, “The increase in the pre-pandemic forecast is unprecedented and highlights the extraordinary impact of the pandemic on government revenues and expenditures.”
- Economist Isabel said that as restrictions are loosened, the government will continue to increase spending, offering loan assistance programs for both workers and businesses, money that is not likely to be returned.
- The great concern of economists is that currently, the government is offering very low interest rates, something that may lead to problems in the future among the society.
- However, the government said that they understand the situation of the economy having contracted by 10%, however they hope that when it is reactivated again the budget deficit can be solved.
Adittional Information:
Breitbart: UK Budget Deficit at Highest Level Since End of Second World War
AP News: UK sees budget deficit rise to highest rate since 1946
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