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What Has The National Debt Been Spent On?
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I am confused - less confused than most as I know the difference between the much talked about deficit and the never talked about national debt.
While the ONS will show you that the deficit has gone down the debn was £1.2T in 2011 and is now £1.8T. So if the deficit is down how is the debt up? what has this money been spend on to not be included in the spending figures.
From what i remember as the ONS site does not go back far enough and i have not looked further the national debt when the conservative arrive was around £500B (which included rescuing the banks). So where has this money gone? how can so much debt be taken on without any explanation?
While the ONS will show you that the deficit has gone down the debn was £1.2T in 2011 and is now £1.8T. So if the deficit is down how is the debt up? what has this money been spend on to not be included in the spending figures.
From what i remember as the ONS site does not go back far enough and i have not looked further the national debt when the conservative arrive was around £500B (which included rescuing the banks). So where has this money gone? how can so much debt be taken on without any explanation?
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//So if the deficit is down how is the debt up?//
The deficit is the annual difference between the nation's income and its expenditure. The debt is how much we owe in total.
So, imagine you have to borrow £1,000 each year to get by. That's your "deficit". After one year you owe £1,000. After two years £2,000. That is your debt. Then you get a pay rise which means you only have to borrow £500 to get by. So your deficit has decreased by £500. But your debt goes up to £2,500 and will continue to increase.
That's how your deficit can reduce but your debt continues to rise.
The deficit is the annual difference between the nation's income and its expenditure. The debt is how much we owe in total.
So, imagine you have to borrow £1,000 each year to get by. That's your "deficit". After one year you owe £1,000. After two years £2,000. That is your debt. Then you get a pay rise which means you only have to borrow £500 to get by. So your deficit has decreased by £500. But your debt goes up to £2,500 and will continue to increase.
That's how your deficit can reduce but your debt continues to rise.
