课 6, 主题 3

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Influences on Government Expenditure

Government expenditure is influenced by the trade/business cycle and spending linked to achieving policy aims
- Government expenditure can happen on a local level (e.g., Kent County Council) or a national level (central government)

Examiner Tips and Tricks

The top three biggest areas of government expenditure in the UK are:

Social Protection (Welfare payments such as state pension, universal credit)
Health care services
Education

A Table Explaining the Influence of the Trade Cycle and Policy Aims on Government Expenditure

Influence of The Trade/Business Cycle	Influence of Policy Aims
Unemployment decreases with a booming economy, leading to a lower level of means-tested benefit payments and vice versa Tax revenue increases with a booming economy and can be used to pay back government debt or increase expenditure on public/merit goods and vice versa	Fiscal Policy is set once a year and announced during the presentation of the Government’s budget Expenditure is directly related to the Government’s objectives and policy aims E.g., A policy aimed at upgrading Britain’s military requires increased expenditure

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