Hi, I need help with essay on Why the actual budget deficit is not a good indicator of the fiscal stance and suggest any other better alternatives. Paper must be at least 1500 words. Please, no plagia

Hi, I need help with essay on Why the actual budget deficit is not a good indicator of the fiscal stance and suggest any other better alternatives. Paper must be at least 1500 words. Please, no plagiarized work!

The budget deficit must therefore be subjected to an intense analysis and scrutiny. Unless it is cautiously interpreted, the budget as is conventionally defined deficit can give rise to misleading conclusions regarding fiscal policy stance. Such conclusions may result in erroneous policy prescriptions that cause more harm than good to the economy (Abedian and Biggs 1998).

For many years policy makers placed a lot of emphasis on limiting government’s role in the economy and lowering the budget deficit (Easterly and Schmidt-Hebbel 2004). The two were regarded as policy goals necessary to achieve equity, growth and redistribution of resources. The big question as to whether the conventional budget balance is the correct indicator of the fiscal stance however remains. It should be noted that there are several other fiscal indicators were proposed as alternatives to the conventional budget balance. These indicators are already in use successfully by international organizations such as the OECD and the IMF (Abedian and Biggs 1998). This study will aim to explore the possibility of using alternative fiscal indicators in monitoring and evaluating the sustainability of fiscal policies.

A critical analysis of the actual budget balance indicates that it is not the ideal measurement instrument with regard to ascertaining the fiscal stance of a country. The term budget deficit also referred to as budget balance appears regularly in news articles, policy documents by the government that usually warn of it being very undesirable (Eisner 1999).