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News Tag: budget deficit

December 8, 2010

Irish parliament approves austerity budget

by Kay Mitchell
The Irish Government has outlined its austerity budget, aimed at saving €6 billion in spending cuts and tax hikes, designed the trim the country‘s budget deficit. Ireland is aiming to save €15 billion (£13 billion) between 2011 and the end of 2014 – 11% of the economy‘s annual output. The measures are a condition of its €85 billion bailout loan as it battles ...

November 19, 2010

IMF-EU officials investigate Ireland’s books

by Kay Mitchell
IMF-EU officials investigate Ireland’s books
As Ireland looks set to accept a multi-billion euro loan, the International Monetary Fund (IMF) and EU officials have commenced their investigation of Ireland’s bank books. Yesterday, Governor of the Irish central bank, Patrick Honohan, said the country is expected to accept a “very substantial loan”. The news comes as speculation has been mounting all week as to whether Ireland would accept emergency funding ...

November 18, 2010

OECD cuts UK economic growth

by Kay Mitchell
Influential think tank, the Organisation for Economic Co-operation and Development (OECD) has today revised its growth for the UK economy, as a result of the Coalition Government’s austerity measures, designed to bring down the budget deficit. However, the revision comes as no surprise as experts have been predicting that the harsh spending cuts will undoubtedly hamper growth. The Paris-based organisation said it expects ...

November 7, 2010

Ireland unveils measures to trim deficit

by Kay Mitchell
Ireland is the latest in a long line of nations forced to introduce tough austerity measures to deal with its spiralling budget deficit. The country’s Government has outlined €15 billion (£13.1 billion) worth of budget cuts and is aiming to shave the deficit to 3% of GDP by 2014 to keep within euro zone rules. Like many other Governments across the world, Ireland ...

Spain’s economic growth stagnates in Q3

by Kay Mitchell
Spain's economic growth stagnates in Q3
Figures have revealed that Spain’s economy stalled in the July to September period. The disappointing 0.2% annualised growth will be a blow to the economy, which is stalling due to measures taken by the Government to trim its spiralling budget deficit. The country is also battling with the highest unemployment rate in Europe. However, last week, figures revealed the country’s unemployment rate had ...

October 27, 2010

Greek economy to contract worse than forecast

by Kay Mitchell
Greece has today forecast that its economy will contract by up to 3% in 2011 - worse than a previous estimate of 2.6%. Greece's finance minister, George Papaconstantinou, said today: "Growth will contract by 4% this year, and next year by between 2.5% and 3%." The country has been battling with its spiralling deficit and the country’s Government has introduced tough austerity ...

October 26, 2010

UK economy sees Q3 growth of 0.8%

by Kay Mitchell
The Office for National Statistics (ONS) has today revealed UK economic growth for the third quarter slowed to 0.8%, albeit double the rate analysts had forecast. Today’s figures will reduce the chance of more quantitative easing from the Bank of England in the short-term, according to many. Some have been calling for an injection of £50 billion via the Bank’s QE programme ...

October 25, 2010

Q3 GDP figures to be published tomorrow

by Kay Mitchell
The initial reading of third quarter economic growth will be published tomorrow by the Office for National Statistics (ONS). Economists expect growth to slow to 0.4% in the July to September period – down from 1.2% in the second quarter. However, tomorrow’s estimate is the first of three and could be revised upwards or downwards in the coming months since at this ...

October 20, 2010

Government unveils harsh spending cuts

by Kay Mitchell
Chancellor George Osborne has today unveiled his Comprehensive Spending Review - in what has been described as the most savage spending cuts since the Second World War. Mr Osborne confirmed he would proceed with almost all of the cuts he detailed in his emergency budget in June. Firstly, defending the cuts, Mr Osborne told parliament: "Tackling this budget deficit is unavoidable. The decisions about ...

September public borrowing rises to record high

by Kay Mitchell
The Office for National Statistics (ONS) has today revealed public sector net borrowing totalled £15.607 billion in September – its highest for the month of September since records began more than 17 years ago. The figure was also higher than the £14.2 billion economists had expected and compares with £14.806 billion a year earlier. Overall, public sector net debt stands at £952 ...

Osborne to unveil Comprehensive Spending Review today

by Kay Mitchell
Chancellor George Osborne will today reveal the Comprehensive Spending Review. He is set to provide details of how he intends to slash spending by £83 billion by 2014 as he endeavours to bring down the spiralling budget deficit. The cuts have received mixed responses; many have been critical of them warning that slashing the deficit too quickly could pose a threat ...

October 17, 2010

US budget deficit shrinks to $1.3tr

by Kay Mitchell
According to Government figures, the US budget deficit fell to $1.294 trillion (£813 billion) in the 12 months to the end of September. The deficit equates to 8.9% of GDP, down from 10% of GDP in 2009, but still represents the highest since the end of the Second World War. The target for President Barack Obama's administration is to shave the deficit ...

October 14, 2010

Pension tax relief slashed as Government looks to save more money

by Kay Mitchell
Pension tax relief slashed as Government looks to save more money
It has been announced that the Government is to reduce the annual amount of pension tax-free income in order to save £4 billion a year, to reduce the spiralling budget deficit. The tax-free amount is being slashed from £255,000 a year to £50,000 from April 2011. High earners will continue to be paid tax relief on pension savings ...

September 30, 2010

Ireland’s budget deficit soars as banks drain economy

by Kay Mitchell
Ireland’s budget deficit soars as banks drain economy
Ireland’s central bank has said that Anglo Irish Bank, Allied Irish Bank and building society Irish Nationwide are all likely to need extra capital in order to stay afloat. The central bank has previously warned that a potential rescue for troubled lender, Anglo Irish Bank, will cost up to €34.3 billion (£29 billion). This has led the Government to promise a ...

Moody’s downgrade Spanish debt to Aa1

by Kay Mitchell
Moody's downgrade Spanish debt to Aa1
Credit rating agency Moody’s has downgraded Spain's credit rating today - just a day after unions held a general strike to protest against tough austerity measures. Like many other euro zone nations, Spain has introduced austerity measures, aimed at cutting its budget deficit, which is currently 11% of GDP. Spain aims to reduce the deficit to 6% by 2011. Moody’s has cut Spanish ...

September 27, 2010

IMF: UK economy “on the mend”

by Kay Mitchell
The International Monetary Fund (IMF) has today said it supports the Coalition Government's tough austerity measures, designed to cut the budget deficit. The support comes despite many experts suggesting that the tough measures could pose a threat to the fragile recovery, because spending cuts and a hike in taxes will have slashed the forecast for growth, which therefore increases the possibility of ...

September 22, 2010

Romania’s entry into euro zone may be delayed

by Kay Mitchell
Romania’s President, Traian Basescu, has today said its entry date for the euro zone may be delayed as it introduces tough austerity measures in order to avoid a Greek-style debt crisis. The country’s current target date for euro zone entry is 1 January 2015 but Mr Basescu said this could be postponed by "one or two years" as it aims ...

September 21, 2010

August public sector borrowing higher than expected

by Kay Mitchell
The Office for National Statistics (ONS) has today revealed public sector net borrowing totalled £15.302 billion in August - a record high for the month. The figure was higher as interest payments on gilts rose because of higher inflation. It was also much higher than the £12.51 billion expected by analysts. However, despite this, receipts are still rising and the figures indicate ...

July 1, 2010

Government withdraws investment for UK car industry

by Kay Mitchell
Business Secretary Vince Cable has warned that the UK’s car industry will not receive any further funding from the Government. Mr Cable was speaking at a conference in London organised by trade body, the Society of Motor Manufacturers and Traders (SMMT). However, he said the industry is "incredibly important to the UK economy" and insisted that "we're not walking away from the ...

June 28, 2010

Government proposes radical reform to benefits system

by Kay Mitchell
As it continues with its priority of cutting Britain's budget deficit, the coalition Government has indicated that incapacity benefits will be targeted in a welfare crackdown. Chancellor George Osborne has already announced tough austerity measures to cut the £155 billion deficit but has now made it clear that sickness benefits will be targeted, as they cost £12.5 billion a year. Mr Osborne ...