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Home BUSINESSMixed observation on upcoming deficit budget
Tue, 19 Mar, 2013 03:50:42 AM
FTimes-STT Report, March 19

The labour Institute (PT) and the Industries Research Institute on Monday expressed different opinions regarding the impact of deficit budget in country´s economy.

The observations came following the Sunday´s remarks of the Prime Minister, Jyrki Katainen who hinted that a deficit budget proposal would be placed in the parliament for this year.

According to the labour Institute, the flexible plan of the government to have a deficit budget may incur the future credit rating of the country at stake.

The Labour Institute viewed that the lower  growth of the Gross Domestic Products (GDP) would certainly effect the country´s Credit Rating which would eventually raise the payment of interest rate to the global financial organizations.

The Confederation of Finnish Industries Researcher, however, did not think that lower GDP growth would affect the interest rate because of the fact that the credit company will make decision on the basis of broader perspective. For example the development works and employment sectors are generally considered in this regard.

The Prime Minister on Sunday in an interview with YLE Radio hinted to place a deficit budget, which meant that a considerable spending cut along with tax increase would be focused in the upcoming budget.

He said that the deficit budget has an incredible impact on the development of the overall economy

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