01-09-2010, 02:48 AM
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.
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.
