The following is an extract from the Budget Statement and Economic Policy of the Government of an imaginary city called Kasoga for the 2021 financial year, presented to its Parliament on Friday, 12th March, 2021. The fiscal deficit, a major determinant of Governments financing requirement, is expected to moderate in the medium-term as government implements its revitalisation and transformation agenda within the context of debt sustainability. Consequently, the fiscal balance has been projected to reduce from the provisional 11.7 percent in 2020 to 9.5 percent in 2021 and reduce further to 4.5 percent by 2024, as shown in Table A below. We, thus, expect a return to the Fiscal Responsibility Act threshold of a deficit of 5 percent and a positive primary balance by 2024. The primary balance is expected to stabilise the growth of debt and promote debt sustainability. With the aid of diagram(s), use the loanable funds framework to explain how the implementation of the above statement could impact private businesses in the Kasoga Citys economy. Make sure to highlight all necessary assumptions under the loanable funds model in your explanation.

Table A: Summary of the Citys Central Government Fiscal Operations (2021-2024)

No	Item	2021 & Medium Term
		2021	2022	2023	2024
1	Total Revenue & Grants	72,452	81,650	92,173	103,752
	% of GDP	16.7	16.7	16.8	16.9
2	Total Expenditures (incl. arrears)	113,750	118,265	122,583	131,290
	% of GDP	26.2	24.2	22.3	21.4
3	Overall Fiscal Balance (Cash)	-41,298	-36,615	-30,410	-27,538
	% of GDP	-9.5	-7.5	-5.5	-4.5
4	Primary Balance	-5,434	1,011	7,404	11,040
	% of GDP	-1.3	0.2	1.3	1.8
5	Nominal GDP	433,686	488,510	548,566	614,680