GOVT SPENDING Flashcards
WHAT IS GOVT SPENFING
spending tax revenue to influence the level of economic activity
what are the three areas govt can spend in
current spenidng
capital spening
welfare benefits
what is current spending
maintenance of key public sector servies and payment of public sector workers
e.g NHS
CAPITAL SPENDING is
spedning on infrastructure projects such as new schools , bridges , railay lines
welfare spending is
beenfits and pensions e.g universal credit
debt interst is
money gov owes and pays interst on
detb interst payments described as
big opportunity costs
wh is debt interst bigg opp cost
could have been invest into current spending to improve education and have a higher productive, capacity filling workforce that allows for more govt spendng through income and corp tax
budget deficit is when
govt spending higher than gov tax rev in a fiscal year
budget surplus is when
govt spending lower than gov tac revenue
national debt
total stock of govt debt overtime
