Friday, 20 August 2010

40% Of GNP

“Although accumulated debt is approaching the cap, we will never exceed that,” Minister of Finance Lee Sush-der (李述德) said when asked if the government planned to revise the Public Debt Act (公共債務法), which sets the combined debt ceiling for the central government at 40 percent of average nominal GNP for the previous three years.

The NT$4.7 trillion loan accounts for 37.79 percent of GNP.
I don't believe the Minister of Finance for one second. All that will happen is that either the accounts detailing the public debt will be artificially redefined (perhaps using PPFs) so as not to contradict the Public Debt Act, or that the 40% of GNP specified in the Act will be further "clarified". Significant public spending cuts - especially to education and healthcare - are as vital to the promotion of individual freedom as the continued growth of government spending in these areas is necessary to the survival of our current collectivist political economy. The continuous growth of government spending - here and elsewhere of course - is simply unsustainable.

No comments:

Post a Comment

Comment moderation is now in place, as of April 2012. Rules:

1) Be aware that your right to say what you want is circumscribed by my right of ownership here.

2) Make your comments relevant to the post to which they are attached.

3) Be careful what you presume: always be prepared to evince your point with logic and/or facts.

4) Do not transgress Blogger's rules regarding content, i.e. do not express hatred for other people on account of their ethnicity, age, gender, sexual orientation or nationality.

5) Remember that only the best are prepared to concede, and only the worst are prepared to smear.