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The current UK government's electoral manifesto enshrined a principle of balanced current budget.According to this principle, tax revenues must be equal to (or larger than)
The current UK government's electoral manifesto enshrined a principle of "balancedcurrentbudget."According to this principle, tax revenues must be equal to (or larger than) spending on current goods and services, and borrowing can only be used for capital expenditure, i.e. essentially infrastructure, which will benefit future generations. Could this principle be consistent with the Golden Rule for fiscal policy-why or why not?
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