tag:blogger.com,1999:blog-2826531655042170344.post8362146533188759270..comments2024-03-26T11:29:52.986+00:00Comments on Economic Incentives: New emphasis on the primary balanceSeamushttp://www.blogger.com/profile/15679299530222667673noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2826531655042170344.post-20994746208364556872013-09-27T11:04:14.672+01:002013-09-27T11:04:14.672+01:00Hi,
It is slight difference in measurement. The ...Hi,<br /><br />It is slight difference in measurement. The €4 billion figure from the April article refers to the overall primary deficit and possibly shouldn't have been used. <br /><br />The €3 billion figures refers to the "underlying" primary deficit. The projection from last year's budget was for a primary deficit of €3 billion. The extra one billion came about as a result of around €1 billion of ELG costs resulting from the IBRC liquidation. Adding this to the €3 billion gets the €4 billion overall primary deficit.<br /><br />The €12 billion deficit this year is roughly €3 billion primary deficit plus €8 billion interest plus €1 billion ELG costs.Seamushttps://www.blogger.com/profile/15679299530222667673noreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-65975001566353600382013-09-27T10:51:00.363+01:002013-09-27T10:51:00.363+01:00Seamus,
Thanks for this excellent piece. On the p...Seamus,<br /><br />Thanks for this excellent piece. On the primary deficit, you have revised it from a projected €4 billion in your April piece for the Indo to €3 billion in this piece. <br />Is this due to better than expected tax revenues or is there another explanation?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-14923722657653403732013-09-25T15:49:42.531+01:002013-09-25T15:49:42.531+01:00Seamus,
As ever, some very useful and informed co...Seamus,<br /><br />As ever, some very useful and informed commentary. The scale of the reduction in the primary balance is a considerable achievement, and one still overlooked by those who only look at the headline deficit. I would be hopeful that the nominal growth rate can soon begin to surpass the average interest rate, which would in turn lead - hopefully - to a rapid reduction in the overall debt. In any case, thanks for your ongoing work which illuminates these issues for the ordinary citizenry.Anonymousnoreply@blogger.com