preview

Government Spending

Better Essays
P3: Identify the impact of government spending on a selected business (Tesco PLC).

The government spending will effect different business in different ways. The way the government spend their money can effect a business as the spending of the government can change or influence the economy of the United Kingdom. What the government spends money on will be influenced by the type of government that is in charge.
The government spends money on many different things. Whatever the governments spends money on will to better the economy of the country.
Public Services, Central and local Government Agencies
One thing that the government spends money on is Public Services, Central and local Government Agencies. Public services are types of services
…show more content…
One of the reasons the government spend is money is so that they can transfer tax revenue to the people of the economy through education, health service and social welfare. The government also spends money for public goods, public goods benefits the country in many ways for example the national defence is a form of public goods, national defence is the line of defence for the country meaning that hey protect the country.
The spending of the government is also referred to as public sending. The government spend money to improve the public. In the United Kingdom 45% of the GPD is taken by the public spending of the government. There are three main areas of the governments public spending. One main area is transfer payments; the transfer payment is the welfare payment of the government these include the job seeker payments, child benefits payments, pension payments and house befits payments. These payments are set out to provide a minimum or basic lifestyle to those who have poor income for example old geezers won’t be earing any money so the government provides state pension for s means of income for old people. Another main area of the governments public spending is the government’s current spending. The current spending of the government is the money that the governments spend on a usual basis whether it is every week, moths or year. An example of current
…show more content…
The multiplier effect is quits similar to the ripple effect as one thing will always effect something else. If the spending of the government is high it will have a positive effect, if the government spending is high there will be a higher demand in products, if the demand in products are high it will mean there will be higher workforce which will mean that there will be employment, more employment will lead to the increase in trade in local areas and if trade is increased suppliers will be needed as they will need to supply more
Get Access