Critically appraise the fiscal strategy of the UK Conservative-Liberal Essay - 1

Critically appraise the fiscal strategy of the UK Conservative-Liberal Democrat Coalition government - Essay Example Amongst the compromises that the two parties made were their held fiscal policies, which have greatly affected the country to the present moment. The unresolved budgetary deficits, a weak economy and no framework for making a quick recovery for the economy can show this. When the recession hit Great Britain in the period 2007-2009, the Labour Government continued in its overspending in terms of the budget, which worsened the state of the public finances (Giudice, Kuenzel and Springbett, 2012, p. 22).   At the campaigns of the 2010 general election, the Conservatives promised faster action to curb borrowing in order to stabilize the economy. Through a new budget introduced on June 22, 2010 by the Chancellor of the Exchequer, the government planned to remove the deficit in the budget by the period 2014-2015. By this time, the amount of borrowing as a share of the GDP would have reduced, achieved through cuts in spending by a figure of 80% and increases in tax by 20%. This reassured the financial markets who continued to lend money and at the same time maintaining a low cost in the repayment of existing money owing. By doing this, the Conservatives had made a concession to their Liberal Democrats Coalition partners, which have led to several difficul ties with regard to the fiscal strategy and policy as originally made. The United Kingdom Conservative-Liberal Democrat Coalition Government aims at reducing the spending by the government so that the deficits that are in the budget are reduced. As already stated, it was initiated in the year 2010 with the main aim of achieving â€Å"cyclically-adjusted current balance by the end of the rolling, five-year forecast period†. This means that the intention of the fiscal policy was to have the austerity measures in place until the period 2015-2016, but this was pushed to 2018. What these austerity measures meant were