Emergency Budget June 22nd 2010: Deficit and Cuts

How much impact will the emergency budget have on the budget deficit? And what will those mind-boggling billion pound amounts actually mean?

To help you understand and contextualise the budget, we’re going to be ‘live-vizzing’. That is, curating a constantly updated visualisation of the announcements and their impact on the Â£156 billion deficit. Tune in to see the figures put into visual context. And to see how close we really are to plugging the black hole in the nation’s finances. (Want to use this graphic yourself? Want the source data?).

budget cuts

Embed

Want to use this graphic in your own site or in the news? We’re happy for you to do so as long as long as you explicitly credit us and have a link back to this url. Here’s an html code snippet to do this:

Want a higher-res version, e.g. for print? You can get it here: http://static.wheredoesmymoneygo.org/i/deficit_budget_print.pdf

Credits

A Where Does My Money Go? visualization by David McCandless / InformationIsBeautiful, research by Lisa Evans and Tim Hubbard using on information from the Institute for Fiscal Studies and HM Treasury.

http://Website Carol

This would be a nice graphic if your ads were not locked onto the screen and covering it. Sloppy work.

http://Website Josh

What ads? Run an ad blocker like me, mate.

http://Website Stray

No ads at all here.

Name (required)

Cool graphic, but it is raise VAT to 20%, not by 20%

http://blog.okfn.org/ Rufus Pollock

Thanks for spotting that and now fixed!

http://Website Name (required)

Cool graphic, but it is raise VAT to 20%, not by 20%

http://blog.okfn.org/ Rufus Pollock

Thanks for spotting that and now fixed!

Name (required)

32B interest on the deficit sounds wrong. Should that be interest on the debt?

http://blog.okfn.org/ Rufus Pollock

You’re quite correct that’s 32bn a year on interest payments on total accumulated debt.

http://Website Name (required)

32B interest on the deficit sounds wrong. Should that be interest on the debt?

http://blog.okfn.org/ Rufus Pollock

You’re quite correct that’s 32bn a year on interest payments on total accumulated debt.

Matthew

circles are notoriously misleading as graphical devices – you might prep them so that the diameter is proportionate to the measure, whereas people will compare the resulting circles in terms of their area, which is proportional to the square of the diameter…

http://sinewave42.com/ Jonathan

Which is why these have value proportional to area.
Jim

To avoid confusion, it would be better to use columns to show the year on year decline in the deficit.

http://sinewave42.com/ Jonathan

That would be different data. And boring.

http://Website Matthew

circles are notoriously misleading as graphical devices – you might prep them so that the diameter is proportionate to the measure, whereas people will compare the resulting circles in terms of their area, which is proportional to the square of the diameter…

http://sinewave42.com/ Jonathan

Which is why these have value proportional to area.
http://Website Jim

To avoid confusion, it would be better to use columns to show the year on year decline in the deficit.

http://sinewave42.com/ Jonathan

That would be different data. And boring.

Peter

I love your work, please keep it up.

The interest on the debt seems to be at a very high APR.

Perhaps we should consolidate all of our loans with Ocean Finance. Or whoever Carol Vorderman is plugging this month.
http://Website Peter

I love your work, please keep it up.

The interest on the debt seems to be at a very high APR.

Perhaps we should consolidate all of our loans with Ocean Finance. Or whoever Carol Vorderman is plugging this month.

Carol

This would be a nice graphic if your ads were not locked onto the screen and covering it. Sloppy work.

Josh

What ads? Run an ad blocker like me, mate.

Stray

No ads at all here.

http://www.wolfkettler.co.uk Wolf

I adore your work. It demonstrates how interesting and visually attractive statistic data can be displayed.
http://www.wolfkettler.co.uk Wolf

I adore your work. It demonstrates how interesting and visually attractive statistic data can be displayed.
http://pgharvey.wordpress.com/ Peter

How about “How will the budget impact the national debt”?

While there is a deficit surely the national debt continues to increase?

http://blog.okfn.org/ Rufus Pollock

Peter, you’ve quite rightly identified that the deficit and national debt are different and that any deficit leads to an increase in the national debt. However, if GDP is also rising then even with a deficit the national debt may be falling as percentage of GDP and its the debt’s size as a proportion of GDP that’s really relevant to our ability to maintain it — hence that figure on the RHS of the diagram stating that the deficit should aim to be between 4-6% of GDP (I’d actually say slightly less than that in a perfect world, say 2-5%, but that figure is realistic for us over the next 5-10 years)

http://pgharvey.wordpress.com/ Peter

How about “How will the budget impact the national debt”?

While there is a deficit surely the national debt continues to increase?

http://blog.okfn.org/ Rufus Pollock

Peter, you’ve quite rightly identified that the deficit and national debt are different and that any deficit leads to an increase in the national debt. However, if GDP is also rising then even with a deficit the national debt may be falling as percentage of GDP and its the debt’s size as a proportion of GDP that’s really relevant to our ability to maintain it — hence that figure on the RHS of the diagram stating that the deficit should aim to be between 4-6% of GDP (I’d actually say slightly less than that in a perfect world, say 2-5%, but that figure is realistic for us over the next 5-10 years)

Hirsch

proportion of circels is not correct. if you compare e.g. 92 with 156 billion you will get other dimensions.
http://Website Hirsch

proportion of circels is not correct. if you compare e.g. 92 with 156 billion you will get other dimensions.
Emil

Another example to go on Stephen Few’s website. A very good example of how you never should present the data…..

Regarding APR I think 32 billions gives about 3.5%? (Out of almost 1 Trillion UK debt…. Deficit = we lose every year not total debts)

BDW I love the facts in this articles (apart from presentation of them).

Increase VAT! Incrase Tax! Pay for mistakes! Until you have budget surplus! and keep it on surplus until you pay off the debts! You cannot declare bankruptcy so easily as a country.

Regards Emil
Emil

Another example to go on Stephen Few’s website. A very good example of how you never should present the data…..

Regarding APR I think 32 billions gives about 3.5%? (Out of almost 1 Trillion UK debt…. Deficit = we lose every year not total debts)

BDW I love the facts in this articles (apart from presentation of them).

Increase VAT! Incrase Tax! Pay for mistakes! Until you have budget surplus! and keep it on surplus until you pay off the debts! You cannot declare bankruptcy so easily as a country.

Regards Emil
http://www.thewealthmagic.com/personal-finance-budgeting-formulas-to-follow-your-money.html personal finance budgeting

The same situation was there in year 2011 and hope it don’t repeat on 2012