2.2.4

Question 1

What is the total managed expenditure (TME)?

Answer 1

The total amount of money that the government spends each year

Question 2

What is around 2-3rds of the total managed expenditure spent on?

Answer 2

Public services such as NHS, schools and prisons

Question 3

What is around a quarter of the total managed expenditure spent on?

Answer 3

Social security such as universal credit and state pension

Question 4

What is the remainder of the total managed expenditure spent on?

Answer 4

Government investment and interest cost on government debt.

Question 5

In 2023-24 what the the total UK government revenue forecast to be?

Answer 5

£1.06 trillion or 41% of GDP.

Question 6

What is the primary source of government revenue?

Answer 6

Tax which is forecast to raise to £950 billion in 2023-24.

Question 7

What is current spending?

Answer 7

Involves recurring spending on providing public services including the pay of teachers and nurses and civil servants.

Question 8

What is the effect of government spending on incomes?

Answer 8

-welfare spending, state pensions.
-creates jobs in public/private sector
-government subsidies help keep prices lower than what they are meant to be. improves real income of consumers who benefit from it.