4.5.1 Public expenditure

Question 1

Capital expenditure

Answer 1

Long-term investment on assets e.g. New equipment in the NHS.

Question 2

Current expenditure

Answer 2

Day-to-day expenses on output e.g. salaries of NHS employees.

Question 3

Transfer payments

Answer 3

A payment made by the government for which there is no exchange of goods/services e.g. Universal credit.

Question 4

The significance of differing levels of government expenditure as a proportion of GDP on: productivity and growth