Government
hits annual borrowing target.
The British
government has borrowed more than expected but has still met its target. They borrowed
11 bn. pounds less than last year. The
Tax increases and the rise of VAT made this possible. The total debt of the UK
is now as much as 66 % of the gross domestic product. This week it will become
clear if the economy is in recession. By 2016-17 the Government aims to have
paid back all her debt.
Specialists are relieved but it might also
mean that the cost of borrowing goes up. When the economy doesn't grow the
government won’t be able to pay back their debts.
Comment by Anne Marieke
How is it possible that all
these governments can borrow so much money? Where does it all come from? Or is
this just one gigantic bubble that can blow up any time. All these years the
finances have been in the hands of specialists supported by many financial advisers.
How is it possible that they didn’t realized that borrowed money must be paid
back some time? It is not like it never happened before. This is not the first
crises but it looks like nobody ever learned from former experiences.
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