Benefits of Using Fiscal Policy to Control the UK Economy

The benefits of using fiscal
policy to control the UK
economy

UK economy:
UK Economy is recovering and expected to reach pre –crisis levels within year of 2022,
where growth has been moderating to 4.7% within year and consumption parameters have been
functionally growing for consumers. This signifies inclusion of new economic policies,
engagement of fiscal policies and also evolvement towards new strategies for technical growth in
business and overall GDP
UK government spending has been around 73.2 billion on current day, within year 2022,
which is 1.0 billion more than in February 2021. UK government borrowing has fallen from
£322 billion (15% of GDP) seen in 2020-21 to £128 billion (5.4% GDP) in 2021-22 which is
positive economic shift.
The UK debt, within public sector has been found to be £2,326.8 billion in figures. UK
has been paying around £310 to £410 billion, for covid -19 healthcare management which has
been found to be one of the specific expenditure. The unemployment rate of UK is expected to
fall to four percent compared with 4.5 percent in 2021. Rate of unemployment is expected to
remain low within economy which is positive sign.
UK gross domestic product (GDP) is estimated to have grown from 0.8 % in January
2022 and is now 0.8% above its pre coronavirus level. Despite end of Covid 19 restrictions,
immediate outlook for UK economy is uncertain (Current UK fiscal rules, 2022.) The
intensifying price pressures and imminent tax hikes have been impacting real household
incomes, along with persistent supply chain disruption and acute labor shortages within output
development. Narrow UE-UK trade deal weights down on UK exports which will revive EU
economy diversely, based on further extended criteria for improved timely expansion based on
competent fiscal policy implementation. The fiscal policy engagement has enabled UK to
develop new economic changes, based on specific functional goals for optimum development. It
can be analyzed that within period of 2022, January to present 2022, April there has been
extensive improvement in economic policies engagement within UK which significantly creates
optimistic economic outlook. The UK economy situation holds productive scope to be attained in