Originally Posted by jmclaugh:
“They do. The UK's 0.7% of GDP legal target is all well and good if you aren't borrowing tens of billions to finance public spending and cutting domestic spending. A more sensible target would be a % of public spending not GDP as the government doesn't have the value of the UK's GDP at its disposal to spend. The UK spends about 1.6% of public spending on overseas aid and it also contributes separately to the EU's overseas aid through its contributions to the EU budget.”
“They do. The UK's 0.7% of GDP legal target is all well and good if you aren't borrowing tens of billions to finance public spending and cutting domestic spending. A more sensible target would be a % of public spending not GDP as the government doesn't have the value of the UK's GDP at its disposal to spend. The UK spends about 1.6% of public spending on overseas aid and it also contributes separately to the EU's overseas aid through its contributions to the EU budget.”
If the UK government tax take as a percentage of GDP was higher it would have no deficit. The UK is in comparison to Sweden, Luxembourg, Denmark, Netherlands a low tax economy.
Government tax take as a percentage of GDP
Denmark 50.8%
Sweden 45.8%
Netherlands 39.8%
Luxembourg 36.5%
UK 34.4%
https://en.wikipedia.org/wiki/List_o...centage_of_GDP
UK deficit as a percentage of GDP 4.1%
https://www.ons.gov.uk/economy/gover.../aprtojune2016





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