01-09-2010, 01:35 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by maqszaman</i>
<br />As far as I have studied economics, all percentages are based on GDP which is a yard stick in economics. GDP is the basic economic indicator. However, HDI factors are not entirely based on GDP, which is quite a different aspect of developmental economics. Deficit planning/financing is also compared as percentage of GDP.
Now come to the point, deficit planning/financing is also a tool of economic growth, if used rationally otherwise it causes devastating effects on the economy. In our country, deficit planning is used to meet running expenditure of the govt. I remember that in the current year budget, deficit planning/financing was much higher than the developmental budget that means the govt. is meeting its running expenditures through deficit planning/financing. Even in the developmental budgets, ERR is calculated first which is a key factor in developmental economics.
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I am agreed and know very well that GDP is used as yardstic. But I gave only a suggestion. Therefore also a trend of using NI as comparsion, but in rare cases.
<br />As far as I have studied economics, all percentages are based on GDP which is a yard stick in economics. GDP is the basic economic indicator. However, HDI factors are not entirely based on GDP, which is quite a different aspect of developmental economics. Deficit planning/financing is also compared as percentage of GDP.
Now come to the point, deficit planning/financing is also a tool of economic growth, if used rationally otherwise it causes devastating effects on the economy. In our country, deficit planning is used to meet running expenditure of the govt. I remember that in the current year budget, deficit planning/financing was much higher than the developmental budget that means the govt. is meeting its running expenditures through deficit planning/financing. Even in the developmental budgets, ERR is calculated first which is a key factor in developmental economics.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I am agreed and know very well that GDP is used as yardstic. But I gave only a suggestion. Therefore also a trend of using NI as comparsion, but in rare cases.
