This book provides an accessible introduction to government budgets and the fiscal policy debates surrounding them, including debates over budget deficits, tax and expenditure policies and public debt sustainability.
It is a unique guide to the major themes of government budgeting and fiscal policy with reference to key principles and evidence, highlighting practical examples across major economies. The book begins with an overview of the contemporary role of government. It analyses the pros and cons of different budget measurement metrics. It breaks down the core components of a government budget and looks at revenue, expenditure, the overall balance and the borrowing requirement and helps to gauge how public debt can become sustainable in practice.
This practical guide will provide both conceptual and practical understanding of government budgets and fiscal policy and will enable students, policymakers and laypeople alike to learn what is happening behind the numbers on government revenue, expenditure, borrowing and balance sheets.