Development of revenues and expenditures of the public budget (Part 1)

To bring the public finances in order, you have two choices. First, one increases the revenue, or secondly, it cuts spending. In the first case, one would talk of increasing taxes, while the latter is called the austerity program. In summer, the Federal Cabinet has agreed on a budgetary savings of 80 billion by 2014. Spread over four years is exactly the sum can be saved, which is missing in this one household in 2010. One may argue about the magnitude, at one point there is clarity. Far more than half of the advertised as austerity budgetary relief are tax increases – unless the labour market would bring considerable relief for the Federal Employment Agency. Then, and only then, the savings would be greater than the actual tax increases.