Do we need to know the three measures of budget outcomes ie Headline/Underlying cash/fiscal balance?
From the leading edge textbook it says:
"There are two main measures of the BUDGET OUTCOME - which are results of the underlying cash outome and fiscal balance.
The underlying outcome is the differnce between budget outlays and revenues, excluding one-off items such as assets sales.It measures cash items, not those which will occur into the future.
The ficsal outcomes calculates the differnce bbetween budget expenditure and revenues also excluding one offs, but is measured through the ACCURAL ACCOUNTING METHOD, which incldues future payments which have not taken place, and is thus reagrded as the most accurate long term indicator of fiscal policy.
Th headline budget outcome is the third measure - which analyses the budgets cash outcome but includes one-off transactions."
What does this all mean????????????? Thanks so much...
From the leading edge textbook it says:
"There are two main measures of the BUDGET OUTCOME - which are results of the underlying cash outome and fiscal balance.
The underlying outcome is the differnce between budget outlays and revenues, excluding one-off items such as assets sales.It measures cash items, not those which will occur into the future.
The ficsal outcomes calculates the differnce bbetween budget expenditure and revenues also excluding one offs, but is measured through the ACCURAL ACCOUNTING METHOD, which incldues future payments which have not taken place, and is thus reagrded as the most accurate long term indicator of fiscal policy.
Th headline budget outcome is the third measure - which analyses the budgets cash outcome but includes one-off transactions."
What does this all mean????????????? Thanks so much...