That is a bigger funding shortfall than in 2000, on the eve of a savage retrenchment by firms that hurt jobs as well as investment (see chart).
The emergency budget presented on June 22nd by Britain’s new Conservative chancellor of the exchequer aims to deliver a whopping fiscal retrenchment equal to 6.3% of GDP by 2014-15.
The winners' extra spending may not offset the losers' retrenchment.
She consulted, and in a degree was influenced by her, in marking out the scheme of retrenchment.
America's government, for instance, needs a medium-term plan for deficit reduction, but cutting back spending viciously in the short term at a time of private-sector retrenchment would be a mistake.
Ground for retrenchment-or possibly for the violent confrontation he says he is determined to.
The retrenchment threatens to knock the U.S. economy into an even deeper recession, regardless of the government's aid, as businesses and consumers struggle to get loans.
Since the crisis, governments have been borrowing furiously to make up for retrenchment in private spending.
Consumers are retrenchment at high interest rates.
The setback is an ominous sign for an economy already facing a severe test in 2011, as the government's fiscal retrenchment moves from plans in Whitehall to reality on the ground.
And (3) large-scale retrenchment in government expenditures.
But the fiscal retrenchment has been well signalled and households and firms should already be bracing themselves for both spending cuts and tax rises.
Mr Osborne stuck to his guns about the overall scale and pace of fiscal retrenchment in the four years to 2014-15, the final year of this parliament.