In economics, fiscal drag is the gradual increase in tax rates that results from bracket creep. bracket creep occurs when inflation pushes taxpayers into higher tax brackets, resulting in higher taxes. This has the effect of reducing disposable income and slowing economic growth. Fiscal drag can be offset by tax cuts or by indexing tax … Read more
A budget is considered balanced when total revenue is equal to total spending. This means that the government is neither running a deficit nor a surplus. The term is often used in reference to the budget of a government, but it can also apply to businesses and households. There are a few different ways to … Read more
What is economic efficiency? Economic efficiency is the use of resources in the most efficient way possible to produce the greatest amount of output. What is an example of efficiency in business? There are many examples of efficiency in business, but one of the most important is the efficient allocation of resources. This means that … Read more
A budget surplus is when the government’s revenue exceeds its spending. The surplus is used to pay down the national debt or to fund other government initiatives. The government’s revenue comes from taxes, fees, and other sources. Its spending goes towards things like defense, education, and infrastructure. When the government’s revenue is greater than its … Read more
EMTNs are Euro Medium Term Notes, a type of debt instrument that is issued by a borrower in the Euro currency. The borrower promises to repay the principal amount of the loan, plus interest, over a set period of time. EMTNs are typically used by large borrowers, such as corporations or governments, to raise capital … Read more
A performance audit is an objective evaluation of how well a government entity is achieving its goals. The auditor assesses whether the entity is using its resources efficiently and effectively, and whether it is complying with relevant laws and regulations. The auditor may also make recommendations for improvements. Why do we need performance audit in … Read more
