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Economics Snapshot - The UK Budget Deficit
Geoff Riley
24th July 2009
In 2009-10 the British government is forecast to spend £4 for every £3 that it receives Spending will be more than 48 per cent of GDP Tax revenues will be 36 per cent of GDP The gap is the budget deficit - forecast at 12% of GDP *For taxes to rise by 5% of GDP the government would have to raise the basic rate of income tax by 12% (it is currently at 20%)
Source: Martin Wolf, Financial Times, June 2009
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.