5.1 Public Expenditure Flashcards
(5 cards)
1
Q
What is current spending?
A
Spending day-to-day by the govt
(e.g. public sector wages, road maintenance)
2
Q
What is capital spending?
A
Money spent on assets
3
Q
What is transfer payments?
A
A payment made without exchange of goods or services
4
Q
What is crowding out?
A
- Financial/ resource
- Government demand for finance can lead to a scarcity of resources for private sector
5
Q
Evaluating crowding out?
A
1) Depends on extent
2) Available supply of loans not limited to domestic
