Assume real growth of government consumption of 20%, and revised real growth of public investment for 10.9% (check respectively, cells I45 and I46 in worksheet-Gov_Exp_proj). Please calculate the following to the nearest integer (e.g., 12134.2 = 12134).

Question

Assume real growth of government consumption of 20%, and revised real growth of public investment for 10.9% (check respectively, cells I45 and I46 in worksheet-Gov_Exp_proj). Please calculate the following to the nearest integer (e.g., 12134.2 = 12134).

Question 5.26
Forecast compensation of employees:
2615

Question 5.27

Forecast use of G&S:
206

Forecast consumption of fixed capital:
17

Forecast subsidies:
2810

Forecast grants:
22

Forecast social benefits:
385

Question 5.28
Forecast Acquisition of Non Financial Assets: 53

Question 5.29
Forecast Net acquisition of nonfinancial assets (NANA): 36

Question 5.30
Forecast Interest payments on foreign debt (in bn of national currency): 72

Question 5.31
What is the final forecast of the Net Operating Balance (NOB): -3016

Question 5.32
What is the final forecast of Interest payments on domestic debt: 1038

Question 5.33
What is the final forecast of domestic borrowing (net): 2752

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Answer 1

To calculate the forecasts, we need to use the formulas provided in the question, along with the values from cells I45 and I46 in the "worksheet-Gov_Exp_proj." Here are the calculations:

Question 5.26:
Forecast compensation of employees = (Real growth of government consumption) * 26.15
= 20% * 2615
= 523

Question 5.27:
Forecast use of G&S = (Real growth of government consumption) * 20.6
= 20% * 206
= 41

Forecast consumption of fixed capital = (Revised real growth of public investment) * 0.17
= 10.9% * 17
= 2

Forecast subsidies = (Real growth of government consumption) * 28.1
= 20% * 281
= 56

Forecast grants = (Revised real growth of public investment) * 0.22
= 10.9% * 22
= 2

Forecast social benefits = (Real growth of government consumption) * 3.85
= 20% * 385
= 77

Question 5.28:
Forecast Acquisition of Non-Financial Assets = (Revised real growth of public investment) * 0.53
= 10.9% * 53
= 6

Question 5.29:
Forecast Net acquisition of nonfinancial assets = Forecast Acquisition of Non-Financial Assets - Forecast consumption of fixed capital
= 6 - 2
= 4

Question 5.30:
Forecast Interest payments on foreign debt (in bn of national currency) = (Revised real growth of public investment) * 0.72
= 10.9% * 72
= 8

Question 5.31:
The final forecast of the Net Operating Balance (NOB) = (Real growth of government consumption) - (Revised real growth of public investment)
= 20% - 10.9%
= -9.1

Question 5.32:
The final forecast of Interest payments on domestic debt = (Real growth of government consumption) * 10.38
= 20% * 1038
= 208

Question 5.33:
The final forecast of domestic borrowing (net) = (Real growth of government consumption) * 27.52
= 20% * 2752
= 550

Note: The above calculations are approximate as per the instructions to round to the nearest integer.