Government cash surplus-does anyone understand it and can explain it t

[Janus 28]

I cannot get my head around this. It was announced that government's finances were in surplus by £2bn last month. But how can there still be a national debt then? Does anyone understand how it works?

 

https://www.bbc.co.uk/news/business-45256075

 

 

http://www.nationaldebtclock.co.uk/

[Robin-H 11]

I cannot get my head around this. It was announced that government's finances were in surplus by £2bn last month. But how can there still be a national debt then? Does anyone understand how it works?

 

https://www.bbc.co.uk/news/business-45256075

 

 

http://www.nationaldebtclock.co.uk/

 

There is a different between deficit and debt. In July we took more in tax etc than we spent (by £2 billion), and so there was a surplus.

 

The national debt is a different thing, and won't go down until we consistently have a surplus and can start paying it off.

[Janus 28]

Thanks Robin.

 

They`ll just blow the suplus won`t they. I imagine that national debt goes right back to the 1939/45 war.

[Robin-H 11]

Thanks Robin.

 

They`ll just blow the suplus won`t they. I imagine that national debt goes right back to the 1939/45 war.

 

They've consistently been cutting the deficit.

 

The annual deficit, as a percentage of GDP, for the financial year ending March 2018, was the lowest since the financial year ending March 2002.

 

In 2010 the deficit was 9.3% as a % of GDP. It was 1.8% in the 17/18 financial year.

[chakademus 10]

I cannot get my head around this. It was announced that government's finances were in surplus by £2bn last month. But how can there still be a national debt then? Does anyone understand how it works?

 

https://www.bbc.co.uk/news/business-45256075

 

http://www.nationaldebtclock.co.uk/

 

It's misleading, Osborne tried to make it law to run a surplus & failed because countries don't have to run a surplus. Public finance doesn't run like a household budget. For one governments can borrow at rock bottom interest rates & raise finance in lots of ways. Austerity is a choice.

Edited August 21, 2018 by chakademus
Mmmm

[Robin-H 11]

It's misleading, Osborne tried to make it law to run a surplus & failed because countries don't have to run a surplus. Public finance doesn't run like a household budget. For one governments can borrow at rock bottom interest rates & raise finance in lots of ways. Austerity is a choice.

 

And what determines those 'rock bottom interest rates'? It's the country's credit rating. And what determines a country's credit rating? It's the country's ability to pay back what it has borrowed. This depends on a strong economy, and isn't helped by ballooning debt and interest on that debt..

[chakademus 10]

And what determines those 'rock bottom interest rates'? It's the country's credit rating. And what determines a country's credit rating? It's the country's ability to pay back what it has borrowed. This depends on a strong economy, and isn't helped by ballooning debt and interest on that debt..

 

They chose to give tax breaks to big business & super rich for a crisis caused by bankers. Whilst taxing everyone else more than at anytime since 1987.

[Anna B 1,417]

It's misleading, Osborne tried to make it law to run a surplus & failed because countries don't have to run a surplus. Public finance doesn't run like a household budget. For one governments can borrow at rock bottom interest rates & raise finance in lots of ways. Austerity is a choice.

 

Well, it is for the government.

 

Unfortunately, not so for us poor saps who have had to suffer the consequences for years.

[chakademus 10]

No coincidence Osborne now advises corporate business. Been in cahoots with them for years.

[Robin-H 11]

They chose to give tax breaks to big business & super rich for a crisis caused by bankers. Whilst taxing everyone else more than at anytime since 1987.

 

They've reduced tax for the poorest earners by raising the income tax threshold and raised tax on the richest through closing loopholes and taxing things such as dividends much more than before.

 

The tax burden on the richest has trebled since the 1970s.

 

https://www.telegraph.co.uk/news/2017/03/19/tax-burden-wealthy-has-trebled-since-1970s-telegraph-analysis/

 

The richest 1% now pay 27% of all income tax.

[chakademus 10]

They've reduced tax for the poorest earners by raising the income tax threshold and raised tax on the richest through closing loopholes and taxing things such as dividends much more than before.

 

The tax burden on the richest has trebled since the 1970s.

 

https://www.telegraph.co.uk/news/2017/03/19/tax-burden-wealthy-has-trebled-since-1970s-telegraph-analysis/

 

The richest 1% now pay 27% of all income tax.

 

Direct & indirect taxation highest since 1987 says IFS.

The torygraph would say that, barclay brothers so committed to avoiding taxation they bought own channel island!

[Cyclone 10]

I cannot get my head around this. It was announced that government's finances were in surplus by £2bn last month. But how can there still be a national debt then? Does anyone understand how it works?

 

https://www.bbc.co.uk/news/business-45256075

 

 

http://www.nationaldebtclock.co.uk/

 

The debt runs to 100's of billions.

Being in a surplus for 2 billion for 1 month will leave the national debt at 100's minus 2.

It's really not that complex.