Government Finances Flashcards
1
Q
Fiscal (budget) Deficit
A
- Biggest post-war deficit - 12.5% in 2020, 11.9% in 2021
2
Q
National Debt
A
Has risen above £2 trillion and above 100% of GDP
2019: 85%
2020: 104%
2021: 109%
2022: 96%
3
Q
Yield on 10-year govt bonds
A
Remain low but may rise > 2%
4
Q
Tax burden
A
Set to rise to 37% of GDP - highest for decades
- Govt need to reduce deficit
5
Q
Income tax allowances
A
Frozen for 4 years (£12,500, 40% tax > £50,270)
6
Q
Corporation tax
A
Rising 19% to 23% for companies with profits > 250k
