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Current balance = Current revenue – current expenditure3.Primary balance = Total revenue – non-interest expenditure4.Structural balance = cyclical adjusted revenue - cyclical adjusted expenditure.10.6 Government (or public) debt.Budget debts have to be financed, one option is to borrow from the central bank, this leads to increasing the quantity of money on circulation and potentially inflation. Most governments tend to borrow in the domesticand international capital markets by issuing bonds on which interest has to be paid. The public debt is the cumulative total of all government borrowing less repayments. The debt is closely monitored for sustainability of the fiscal policy. A primary budget deficit can be mainted for some time without increasing public debt/GDP ratio as long as the rate of real economic growth exceeds the real rate of interest. A general rule is that the public debt should be kept below 60% of GDP. 10.7 Government saving or dissaving.Government saving is the difference between the current income and current spending of general government. CHAPTER 11SOCIAL AND POLITICAL INDICATORS.Stats pertaining to social economics are mainly concerned between people in respect of health, education, etc. and include social indicators, development indicators or human development indicators. Economic indicators are concerned with things. 11.2 Definitions of a few social indicators:Crude birth rate – is the annual number of live births per 1000 populationCrude death rate – is the annual number of deaths per 1000 populationAge-specific fertility rate –is the ratio of the number of children born live to women of a specific age to the number of woman in the group.Total fertility rate –is the average number of children that would be born alive to a woman if she were to live to the end of her childbearing years and bear children at each age. Life expectancy at birth –is the number of new born infant would live if prevailing patterns of mortality at the time of birth were to stay the same.Infant mortality rate –is the number of infants who die before reaching one year of age per 1000 births in a given year.29 | P a g e
Under-five mortality rate –is the annual number of children deaths under the age of five per thousand live births averaged over the previous five years.Access to health care –is the share of population for whom treatment of common diseases and injuries is available within an hour’s travel.Access to safe water –is the percentage of population with reasonable amounts of safe water.Access to sanitation –is the percentage of population with at least adequate excreta disposal facilities.Primary school enrolment ratio –is the ratio of children enrolled in primary school (age 6-11)Secondary school enrolment ratio –is the ratio of children enrolled in secondary school (age 12-17)tertiary school enrolment ratio –is the ratio of children enrolled in tertiary school (age 20-24)Net enrolment –is the percentage of school children who are enrolled in school. Adult illiteracy –Percentage of population over 15 who cannot read or write.