Gordon Brown's Balancing Act
... year which would result in falling tax revenues. This would mean less money for the government to spent on education, healthcare, and transport as it had pledged to do. Furthermore the author points out that the government needs to borrow approximately ₤22bn instead of ₤11bn for the financial year of 2002. Therefore some economic analysts foresee a bleak future for Britain’s financial situation, even though Mr. Brown claims that the accumulated surpluses of former years will be sufficient to support his borrowing strategy and that “budgets balance themselves out over an economic cycle”. Another issue is the even worse economic situation in the other two big European economies, France and Germany. Analysts forecast an economic growth in France below the 1% mark for this year and around 1.4% for next year instead of an anticipated 2.5%. And even Germany’s economy is predicted to underperform at around a 1% to ...