Economic Impact of Coronavirus
According to the director of the Institute for Fiscal Studies, the budget deficit of the UK is now set to notice a really gigantic increment to a position that has not been seen ever. This is the economic impact of coronavirus.
Paul Johnson reported to the BBC that this economic impact of coronavirus was capable of pushing the shortage to as high as £260bn. He was speaking of the most recent figures, which revealed that the shortage could hit £48.7bn in 2019-20 financial years. However, Paul said that those figures had been the numbers before the pandemic. Last year the deficit (a gap between the income and expenditure of the government) was around £9.8bn greater than the deficit in 2018-19 financial years and similar to 2.2% of the GDP.
The Office for the National Statistics that released those amounts reported that they had not captured the greater spending declared by the government to deal with the virus. It also added that the coronavirus pandemic was hoped to have a remarkable impact on the UK public fields of finance. Besides, those effects will gradually arise from the introduction of public health measures as well as from new government policies to provide support to individuals and businesses.
Rise of the Taxes
The ONS reported the full effects of the coronavirus on public finances would have become clearer in the upcoming months. On today’s program of BBC, Mr. Johnson said that there had been a great amount of uncertainty that was surrounding the economic impact of coronavirus.
However, the government had declared the tax cuts and increasing the spending worth around £100bn, so the impact had been ready to dwarf the situation that they had seen during the financial crisis.
Mr. Johnson also said that the economy was not capable of recovering so quickly eventually and would remain tinier than it would have been. He said that he would be surprised within a couple of years; the economy got back to the place where it should have attained now.