Financial Jargon... what does it mean expansionary?

Budget - Something that we all have to do in order to keep our money in check!
@ahgong (10064)
Singapore
November 11, 2008 9:09pm CST
I have been following the local news with interest of late. And when the budget plans for next year was revealed, the term the budget will be expansionary kept being repeated by the various politicians who made speeches. I understand that a budget is used to plan and distribute money to different uses throughout the year. It is also a time where the people get to know how the government spends tax payer's monies. It is also the time where the government is able to make a difference to the people or the local economy by simulating spending or reducing expenses. In other words, house keeping of finances. But what do they mean when they say the budget is expansionary? This is new word to me. So many financial jargon has been coined recently, that I am starting to get lost all over again. Any kind soul out there able to explain to this old man what does it mean to have a expansionary budget?
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2 responses
@applefreak (3131)
• Singapore
13 Nov 08
hmm i've read about this word in the press recently too. my take is that the budget will focus on expanding the economy. ways to do it usually is spending more money. things like building new buildings, new roads to create job opportunities. this is usually the approach taken during bad times. the main aim is to stimulate the contracting economy. it might result in a budget deficit but we should have enough national reserve for that. cheers
• Singapore
13 Nov 08
well it's does trickle down to the local man in the street. if the government build a new building, material has got to be purchased. this will benefit the supplier, the importer and the wharf hands. then the construction workers who come to singapore has got to eat right? so more people will be buying food which means more business for the importer, the wholesaler and the retailer. then the bigger companies employ accounts clerk, receptionist, stock handlers and delivery men which means some singaporeans will get the job. that's how the expansionary budget benefits us folks. as for tax benefits for companies, it makes it attractive to set up branches here. with branches, they need the locals to fill the vacancies. so jobs are created and singapore will have a lower unemployment rate.
@kun2349 (23464)
• Singapore
12 Nov 08
haha.. Even a young man like me also dun understand what it means by that.. BUt i do have a feeling that, it's supposed to help us in some ways, but not entirely.. MEaning, very small amount of money being used at a time, but being distributed in many periods of time, and the amount varies for each sector.. But this is how i think and what i derive from what i heard, but i'm not really sure if it works this way. It's just my own opinion ^_^
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@ahgong (10064)
• Singapore
13 Nov 08
I also not sure about the definition. That is why I am asking here. This is the first time I heard of such a term. And I am really curious to see how it is going to be implemented. From the initial news reports, it seems that the money is going to be used for businesses and tax rebates for businesses. Nothing much about reducing inflation cost, or personal tax reliefs or even property tax reliefs. So doesn't make that much of a difference to me, layman on the ground leh. Sigh... pay taxes then no benefits wans. Will keep a lookout on the news with regards to the budget.
1 person likes this