understanding financial jargon
For any government, the structural deficit is the difference between government income (usually tax revenue) and government expenditure (health service, defence, education etc.), but which does not include income from one-off sources such as privatisations and temporary windfall taxes. The structural deficit shows a fundamental imblance between income and expenditure which can only be maintained by the government issuing debt instruments in order to borrow from investors.
A structural deficit therefore can only be maintained as long as investors believe that the government can repay it's debts. This implies that at some stage in the future the government will be able to produce a surplus which can be used to pay off the debt
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
We hope you found this information useful.
Copyright © Steve Gears Associates. All rights reserved. No portion of this site may be reproduced without written permission. All Trademarks are freely acknowledged.The information on this site is based on UK data unless otherwise indicated. Non-UK visitors should check with experts within their own legal jurisdiction before relying on information presented here.