Post by joita9865 on Oct 25, 2023 9:19:08 GMT
The method of calculating the value of the annual gross domestic product and state public debt is determined by law. Exceeding the upper limit of 60% means violating the provisions of the Constitution and may result in the dismissal of the Council of Ministers and the enforcement of the liability of its members before the State Tribunal. However, in accordance with the Public Finance Act, specific precautionary and remedial actions should be taken when the ratio of the amount of public debt increased by the approximate amount of future payments of sureties and guarantees to GDP is in the range of 55-60% of GDP.
If the upper threshold is exceeded, appropriate security procedures will be applied to reduce philippines photo editor the debt level. Instruments for fighting public debt How can the government seek to reduce debt? The main tool is broadly understood fiscal policy, which can be divided into active and passive, and expansionary and restrictive. Active fiscal policy Its aim is to limit the negative effects of economic fluctuations, reduce unemployment and stabilize prices. Therefore, actions are taken, including changing the structure and rates of taxes, changes in public expenditure, reducing or increasing state interventionism.
As you can see, this type of policy is quite flexible, the authorities can decide on the next steps quite freely. This, of course, involves the risk of negative economic phenomena. In addition, the actual implementation of the mentioned actions takes a long time. Passive fiscal policy It is based on the so-called automatic economic stabilizers . These are tools that stimulate or inhibit economic activity.
If the upper threshold is exceeded, appropriate security procedures will be applied to reduce philippines photo editor the debt level. Instruments for fighting public debt How can the government seek to reduce debt? The main tool is broadly understood fiscal policy, which can be divided into active and passive, and expansionary and restrictive. Active fiscal policy Its aim is to limit the negative effects of economic fluctuations, reduce unemployment and stabilize prices. Therefore, actions are taken, including changing the structure and rates of taxes, changes in public expenditure, reducing or increasing state interventionism.
As you can see, this type of policy is quite flexible, the authorities can decide on the next steps quite freely. This, of course, involves the risk of negative economic phenomena. In addition, the actual implementation of the mentioned actions takes a long time. Passive fiscal policy It is based on the so-called automatic economic stabilizers . These are tools that stimulate or inhibit economic activity.
