What is Fiscal Cliff : Towards the end of 2012 in USA, the Fiscal Cliff terms is hotly discussed. Fiscal Cliff here refers to the economic effects that could result from (a) tax increases, (b) spending cuts and (c) a corresponding reduction in the US Budget deficit beginning in 2013, if the existing laws are not changed by the end of 2012. Interestingly, there are number of scheduled measures in the US economy which are to take effect from beginning of January 2013. If these measures are allowed to take place, the deficit in US budget (we know deficit is the difference between what the government takes and what is spends) is likely to be reduced by almost half beginning the first days of 2013. This kind of sudden fall in deficit in a short period of time is known as "fiscal cliff".
Posted on: Mon, 15 Jul 2013 08:58:24 +0000
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