Copyright 2007 – Biz/ed Public Sector Spending

Copyright 2007 – Biz/ed Public Sector Spending The Public Sector – that part of business activity that is organised and controlled by the government or its agencies on behalf of the nation as a whole The public sector comprises:

Copyright 2007 – Biz/ed Public Sector Central Government –Parliament –Government Departments – education, defence, etc. –Devolved Governments –Other public funds - Foreign exchange reserves, Quangos Quasi Autonomous Non-Governmental Organisations now referred to as Non Departmental Public Bodies, e.g. Equal Opportunities Commission, Advertising Standards Authority, Competition Commission, English Heritage Local Government Public Corporations –Post Office –BBC

Copyright 2007 – Biz/ed Public Sector Spending

Copyright 2007 – Biz/ed Public Sector Spending Data Source: HM Treasury Public Sector Finances Databank

Copyright 2007 – Biz/ed Public Sector Spending Total Managed Expenditure for 2003 – 2004: £454.6 billion! Most items of defence spending do not come cheap. Copyright: Stock.Xchng

Copyright 2007 – Biz/ed Total Managed Expenditure (TME)

Copyright 2007 – Biz/ed Total Managed Expenditure The Government’s preferred measure of public spending Derived from National Accounts Meets international guidelines

Copyright 2007 – Biz/ed Components of TME Current Expenditure: Spending on day-to -day government activities

Copyright 2007 – Biz/ed Components of TME Capital Expenditure : Spending on buildings, machinery, vehicles, etc. Fixed Capital Formation –Tangible assets – buildings and so on –Intangible assets – for example, software –Capital grants

Copyright 2007 – Biz/ed Financial Transactions

Copyright 2007 – Biz/ed Components of TME Financial Transactions: Financial transactions carried out by the government – e.g. buying shares, lending money to business and other countries, etc.