April 20, 2024
Economy
Fiscal spending effects to taper off in 2017: report
[THE INVESTOR] The effect of government fiscal spending to bolster the economy is feared to lose further ground in 2017, a report showed on Dec. 26.
The National Assembly Budget Office said in the report that the impact of fiscal spending on the country’s gross domestic product and job creation has been on the decline since 2014 and is expected to lose more momentum in the coming year.
Based on the government budgets from 2014-17, the report analyzes how an increase in unit fiscal spending -- including spending on goods and services, capital expenditures and current transfers -- affects the country’s economic growth and the number of jobholders.
The report attributed the steady fall in the impact of fiscal spending to a range of reasons, including the country’s greater opening to the outside world and the so-called crowding-out effect of government debt financing.
(theinvestor@heraldcorp.com)
The National Assembly Budget Office said in the report that the impact of fiscal spending on the country’s gross domestic product and job creation has been on the decline since 2014 and is expected to lose more momentum in the coming year.
Based on the government budgets from 2014-17, the report analyzes how an increase in unit fiscal spending -- including spending on goods and services, capital expenditures and current transfers -- affects the country’s economic growth and the number of jobholders.
The report attributed the steady fall in the impact of fiscal spending to a range of reasons, including the country’s greater opening to the outside world and the so-called crowding-out effect of government debt financing.
(theinvestor@heraldcorp.com)
