Spending, Borrowing and Debt

  • Peter Curwen
Part of the Macmillan Texts in Economics book series (TE)


Whereas the government has shown some ambivalence about the presentation of its policy objectives since 1979, its public spending plans have always been an important element of its strategy. The government’s stated objective has long been to hold the rate of growth of public spending (excluding privatisation proceeds) below the growth rate of the economy as a whole, and thus to reduce public spending as a proportion of national income. This should then make it possible to ease the burden of taxation without any accompanying increase in the overall burden of the National Debt, and from this should flow the enterprise and efficiency which leads to growing output and employment. Once our discussion of public spending is complete, we will move on to examine in sequence the Budget, the government’s borrowing requirements and their impact upon the National Debt.


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© Peter Curwen 1997

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  • Peter Curwen

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