UK Budget 2006 was announced by the Chancellor in the first quarter of 2006. It provided a plan of expenditure and revenue for that year.
Perspectives:
- The Government's primary objective was a strong and growing economic structure. This necessitated an updated fiscal prediction.
- Productivity will be proliferated by enhancing the technological skills. So investments in science and technology will be increased.
- The tax system will be simplified and an extra amount of money will be provided to drive the recruitment Police Community Support Officers.
- Children will be offered a large amount of support by an additional payment into the Child Trust find and that also only at the age of seven only.
- Special funding will be announced to help the U K's sport persons, especially the athletes who will take part in the 2012 Olympic Games.
Budget Plans:
- Schools in UK will get 930 million pounds to support the children. Also 250 pounds will be provided per child into the Child Trust Fund. For those children under the poverty line the amount will be 500 pounds
- To develop personal skills the Government will lift the National Minimum Wage rate to 5.35 pounds.
- To create flexible environment for the investors the UK Government is going to open Real Estate Investment Trusts.
- The government will provide extra 2.5 billion pounds for research and development.
- To protect the environment an extra amount of money, 50 million pound to be precise, will be given for the development of micro generation technology.
- Consumer spending growth will be increased by .50% in comparison with the previous year.
- Investment growth rate will be increased by 2% and public consumption growth rate will be 2.5%. The gross domestic product will increase by 2% in this year.
- For the preparation of the athletes, as stated earlier, UK government will announce 200 million pounds.
Budget Deficit:
The UK budget deficit for the year 2006 was 8.7 billion pounds which had set a record. Since the Government was spending more, for example spending in public sector increased by 3.1%, that's why the deficit went high.