While the previous literature on the sustainability of the budget deficit
has implicitly assumed that its size and whether it is in surplus or deficit does not matter, policymakers may very well take into account these factors when determining expenditures and tax policy.
In addition, and more importantly (at least, from the viewpoint of the purpose of this study), the estimated coefficient on the deficit variable ([RDEF.sub.t]) is positive (as hypothesized) and statistically significant at the one percent level in all three of the estimations; thus, it appears that the real federal budget deficit
in the United States acts to elevate each of these three interest rate measures ([COST.sub.t], [NEW.sub.t], and [MORT.sub.t) that affect the profitability and ultimately the solvency of S&Ls in the United States.(2) In principle, this finding of a positive impact of the budget deficit
on interest rate measures is consistent with the studies by Barth, Iden, and Russek [3; 4], Hoelscher , Cebula [6; 7], Tanzi , and Zahid .
The budget deficit
of 6.6 percent of GDP was the highest recorded during the five-year tenure of the previous PML-N government.
The government is on track to apply a reform package introduced by the IMF, aiming at cutting the budget deficit
to disburse the second instalment of a $12bn loan programme agreed on in November.
Pakistan had already started repaying to the International Monetary Fund (IMF) in February this year with a $417 million payment which will also affect government efforts to keep budget deficit
The non-partisan Congressional Budget Office (CBO) forecasts a budget deficit
of $1.17 trillion for the entire 2012 fiscal year, which started October 1.
"This year we are going to end up with a budget deficit
of 4 per cent, next year we will be very lucky if we end up with 6 per cent," Jalloul Ayed told a conference.
In 2010, the budget deficit
at the end of June, accumulated during the first six months of the year, has been BGN 1.5 B, or 2.2% from the Gross Domestic Product, GDP.
"The budget deficit
was 52.76 billion TL in 2009 which means a 25 percent drop in 2010's budget deficit
ISLAMABAD, June 1 -- Consolidated budget deficit
of the federal and provincial governments during the first nine months (July-March) of the ongoing fiscal year 2009-10 has shot up to Rs 625.960 billion, 4.2 percent of the GDP.
Summary: The government had projected a budget deficit
of $2.1 billion for the year.
KARACHI -- Owing to the government's failure to enhance revenues and control expenditures during its first year in power, the public finances further deteriorated with the budget deficit
rising to a record Rs3.45 trillion or 8.9pc of the size of the nation's economy.