Giant Economies of the World Increase Public Expenditures

Giant Economies of the World Increase Public Expenditures

Governments worldwide are increasing their financial incentives to support economies. However, these incentives may not come to life fast enough to satisfy central bankers 'who do not want to take the burden alone'. According to economists' estimates, more than half of the world's 20 largest economies are expected to have larger budget deficits and less budget surplus than 6 months ago. Economies such as China and South Korea are implementing fiscal stimulus policies due to coronavirus-related supply chains and industry damage. Britain and Russia abandon their long-standing austerity policies. This change in budget estimates is the result of a slowdown in growth expectations, not high spending or low taxes. While G20 Finance Ministers are preparing to meet in Riyadh, the budget forecasts and recent policy changes in some countries are as follows; Turkey Budget deficit / GDP forecast: 3.6% 2021 estimate: - 3.3% relaxation with the financial support of low-interest credit growth in Turkey, as growth revives. Last year, the annual budget deficit / GDP ratio was around 3%. The government expects a similar rate this year. USA 2020 budget deficit / GDP forecast - 4.8% 2021 estimate: - 4.8% President Donald Trump implemented incentives such as tax breaks and high public spending. Although Trump promised more tax cuts to the middle class, he submitted his 2021 budget proposal to Congress, which this month cut spending. The budget is not expected to be accepted before the November elections. China 2020 budget deficit / GDP forecast: -4.8% 2021: - 4.6% In an environment where sectors and regions are isolated because of the virus, the government is determined not to lower its growth targets, so it is preparing for more financial incentives. The government also announced that some additional measures will be taken this week, including corporate taxes. Germany 2020: 0.7% more 2021: 0.2% Europe's largest economy is considered the biggest candidate for financial relaxation, as it has significantly less public debt than many of its neighbors. The European Central Bank and France are at the top of the call for action to the government. However, Merkel's coalition began limiting incentives focused on green projects. It is stated that the recession and coronavirus concerns in the manufacturing sector in the country where the budget discipline is seen as a symbol of political power will not be enough to change this attitude. Japan 2020: - 2.9% 2021: - 2.7% Before the coronavirus threat, the country was faced with the threat of recession due to the impact of some tight financial policies. Tax increases also contributed to the decline in production in October. Lawmakers approved the budget of about $ 29 billion last month. Extra incentives on paper are expected to arrive in late March.