The Public Expenditure Cuts: Rationale and Consequences

Peter Jackson

Fiscal Studies, 1980, vol. 1, issue 2, 66-82

Abstract: Since coming to office the present government has been involved in implementing its economic philosophy, which sees the future growth and development of the UK economy dependent upon the elimination of inflation, the re-establishment of economic incentives, the return of many activities to the market place and a reduction in the public sector's involvement in economic and social affairs. One key policy instrument in the government's whole economic package is public expenditure. If the government is to achieve its economic objectives and extend the sphere of private choice then public expenditure must be cut. In this paper we shall concentrate upon the basic economic issues which are raised by the current policy of public expenditure cutting as set out in Cmnd.7746, The Government's Expenditure Plan 1980-81.

Date: 1980
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