DIY fiscal sustainability analysis

There’s a whole bunch of terminology surrounding fiscal sustainability, such as the structural balance mentioned here. Getting the different definitions of the fiscal balance straight can be a bit of a head-spinner.

The structural balance is probably more complex than most, but it directly addresses some of the problems with using the overall balance as a measure of fiscal sustainability, and the public arguments arising therefrom.

Plenty of people are worried over Malaysia’s rising public debt level, pointing to its rapid average growth over the past 5-6 years. I’d point out that much of the increase relative to GDP occurred in 2009 due to a sharp drop tax revenues, something which a structural approach would cater for.

Read more HERE.

Source: MOLE