CIMA BA1 Syllabus A. Macroeconomic And Institutional Context Of Business - Government Spending - Notes ^{15 / 17}

Government Spending

The amount of money that a government plans to spend will depend on the attitude to government involvement in the economy and other factors such as the stage of the trade cycle.

The table below shows an example of government spending.

A government spends money on:

1. Pensions

2. Health Care

3. Education

4. Debt interest
    

5. Defence

   Military defence
   Civil defence

6. Welfare

   Family and children
   Unemployment
   Housing
   Social protection

7. Protection

   Police services
   Fire-protection services
   Law courts
   Prisons