Federal Government budget deficit:

 

According to the business dictionary, federal budget deficit means “The financial shortage of the federal government's budget.  It represents more money being spent than is coming in via taxes and other income.” And the Investopedia explains that “The opposite of a budget deficit is a budget surplus, and when inflows equal outflows, the budget is said to be balanced.”

As can be seen in the chart below, “Colombia recorded a Government Budget deficit equal to 2.40 percent of the country's Gross Domestic Product in 2014. Government Budget in Colombia averaged -3.63 percent of GDP from 2001 until 2014, reaching an all time high of 0.23 percent of GDP in 2005 and a record low of -8.47 percent of GDP in 2004. Government Budget in Colombia is reported by the Ministry of Finance and Public Credit Republic of Colombia.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Critical Analysis:

 

For as long as there is a federal government deficit, there will always be a big amount left to cover it, for example on August of 2014, according to Moldovan, “Colombia’s 2015 budget contains a mixture of funding dynamics only partially consistent with the “three pillars” Santos outlined in his 2014 inauguration address – peace, education, and equity. The $110 billion budget, which grew 4.5% on an inflation-adjusted basis over 2014, puts about $83 billion into various investments and ministries with the remaining $27 billion going towards servicing the national debt, which at last count was about $163 billion and 75% peso-denominated.” Therefore this is a threat for the education industry for several reasons: First there are other industries wich compete for the money, second as previously said, a great part of the money goes to toward the principal problem (paying the deficit), third, less money equals less investigations, less materials and less quality for the industry of education.

 

 

Business Dictionary. Federal budget Deficit. Retrieved August 25, 2015, from, http://www.businessdictionary.com/definition/federal-budget-deficit.html

 

Investopedia. Budget Deficit. Retrieved August 25, 2015, from http://www.investopedia.com/terms/b/budget-deficit.asp

 

Moldovan, S. (2014). Crunching the numbers on Colombia’s 2015 budget. Retrieved August 25, 2015, from http://colombiareports.com/crunching-numbers-colombias-2015-budget/

 

Trading Economics. Colombia Government Budget. Retrieved August 22, 2015, from http://www.tradingeconomics.com/colombia/government-budget