Government must focus on debt reduction, expert says
Government must focus on debt reduction, expert says
- Wednesday, 21 October 2009It is "absolutely essential" that the government addresses its
debt problems and balances its books before the current proposed deadline of 2016-17.
That is according to the Cass Business School (CBS), which has backed recent calls from the Confederation of British Industry (CBI) that the government should address the public sector debt package and lose its debts by 2015-16.
Geoffrey Wood, professor of economics at the CBS, said that the current problems had arisen as a result of continued loaning even in times of economic buoyancy.
He commented: "We've been borrowing whenever the economy has been doing well. It's a terrible fiscal policy. Government spending is out of control."
The CBI has suggested that the government must reduce its current spending programs by £120 billion in order to adequately tidy up its finances.
It has also called upon Alistair Darling to come up with a credible plan in the Pre-Budget Report.

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