Government Spending Flashcards
1
Q
What are the types of government spending
A
Current spending
Capital spending
Welfare spending
Debt interest payments
2
Q
What is current spending
A
Maintenance of public services and payment of public sector wages
3
Q
What is capital spending
A
Infrastructure projects
4
Q
What is welfare spending
A
Benefits and pensions
5
Q
What will happen if government spending is higher then taxation
A
Budget deficit
6
Q
What will happen if government spending is less than taxation
A
Budget surplus
7
Q
What is national debt
A
Total stock of debt over time
Accumulation of budget deficits
