Neil Gilbert
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780195376630
- eISBN:
- 9780199865499
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195376630.003.0007
- Subject:
- Social Work, Social Policy
What types of public expenditure can be computed to assess “stateness” and state action? And once these measures of expenditure are agreed upon, what meaning can be drawn from simple rank-order ...
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What types of public expenditure can be computed to assess “stateness” and state action? And once these measures of expenditure are agreed upon, what meaning can be drawn from simple rank-order comparisons (or more sophisticated statistical clusters) of where the United States and the European nations stand, according to the computations employed? Conventional measures of state action often focus on two major realms of activity — defense and social welfare — and involve some metric of public expenditure, typically calculated as a percentage of gross domestic product (GDP). In examining what meanings can be drawn for comparative measures of similarities and differences in United States and European activity in these realms, this chapter comments on defense, but concentrates mainly on the realm of social welfare.Less
What types of public expenditure can be computed to assess “stateness” and state action? And once these measures of expenditure are agreed upon, what meaning can be drawn from simple rank-order comparisons (or more sophisticated statistical clusters) of where the United States and the European nations stand, according to the computations employed? Conventional measures of state action often focus on two major realms of activity — defense and social welfare — and involve some metric of public expenditure, typically calculated as a percentage of gross domestic product (GDP). In examining what meanings can be drawn for comparative measures of similarities and differences in United States and European activity in these realms, this chapter comments on defense, but concentrates mainly on the realm of social welfare.
Nicholas Bosanquet
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780198280354
- eISBN:
- 9780191599422
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198280351.003.0011
- Subject:
- Political Science, Comparative Politics
Public demands are pressed on governments directly by mass action, representatives or sectional interests, while economic constraints are exerted especially by public expenditure and taxation. ...
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Public demands are pressed on governments directly by mass action, representatives or sectional interests, while economic constraints are exerted especially by public expenditure and taxation. Cross‐national comparisons are made of public support for government economic intervention and for public expenditure in a number of specific policy areas. The contrasting record of the UK, Germany, and the European Community is analysed. Public aspirations have exceeded the limits implied by economic constraints.Less
Public demands are pressed on governments directly by mass action, representatives or sectional interests, while economic constraints are exerted especially by public expenditure and taxation. Cross‐national comparisons are made of public support for government economic intervention and for public expenditure in a number of specific policy areas. The contrasting record of the UK, Germany, and the European Community is analysed. Public aspirations have exceeded the limits implied by economic constraints.
Colin Thain and Maurice Wright
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198277842
- eISBN:
- 9780191684203
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198277842.001.0001
- Subject:
- Political Science, UK Politics, Political Economy
The Treasury is at the heart of British Government, responsible for deciding how much to spend and on what. Both the institution and the public expenditure process are the focus of this book. Based ...
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The Treasury is at the heart of British Government, responsible for deciding how much to spend and on what. Both the institution and the public expenditure process are the focus of this book. Based on research undertaken with the cooperation of the Treasury and Whitehall departments, it shows how the key decisions of planning, allocating and controlling public expenditure are made. With access to treasury Expenditure Controllers and senior financial officials in the main spending departments, the book provides an account of the roles, relationships and inter-actions of the key players in Whitehall Expenditure Community as they confront each other in annual rituals of the Expenditure ‘Survey’. It explains how the rules of the expenditure game were re-drawn in the 1980s in the relentless search for cuts, greater economy and efficiency in the design and delivery of public services, and the creation of a more enterprising administrative culture. It discusses how and why the Treasury was rarely able to impose its constitutional authority to stem the tide of rising public expenditure through the turbulent years of the Thatcher and Major Governments. The book also demonstrates that the Treasury is locked into a system of mutually constrained power relationships with the Whitehall departments, and obliged to negotiate discretionary authority to control their spending.Less
The Treasury is at the heart of British Government, responsible for deciding how much to spend and on what. Both the institution and the public expenditure process are the focus of this book. Based on research undertaken with the cooperation of the Treasury and Whitehall departments, it shows how the key decisions of planning, allocating and controlling public expenditure are made. With access to treasury Expenditure Controllers and senior financial officials in the main spending departments, the book provides an account of the roles, relationships and inter-actions of the key players in Whitehall Expenditure Community as they confront each other in annual rituals of the Expenditure ‘Survey’. It explains how the rules of the expenditure game were re-drawn in the 1980s in the relentless search for cuts, greater economy and efficiency in the design and delivery of public services, and the creation of a more enterprising administrative culture. It discusses how and why the Treasury was rarely able to impose its constitutional authority to stem the tide of rising public expenditure through the turbulent years of the Thatcher and Major Governments. The book also demonstrates that the Treasury is locked into a system of mutually constrained power relationships with the Whitehall departments, and obliged to negotiate discretionary authority to control their spending.
Francis G. Castles
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780195376630
- eISBN:
- 9780199865499
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195376630.003.0006
- Subject:
- Social Work, Social Policy
Using cross-national data on various aspects of public expenditure development largely from the Organization for Economic Cooperation and Development (OECD) and Eurostat sources, this chapter ...
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Using cross-national data on various aspects of public expenditure development largely from the Organization for Economic Cooperation and Development (OECD) and Eurostat sources, this chapter explores whether the character of public intervention in the United States is distinctively different from that of the countries constituting the European Union (EU), and whether patterns of public intervention in the United States and Europe are becoming more or less alike over recent decades. The chapter addresses these questions by identifying the extent of homogeneity or heterogeneity in European public expenditure outcomes by comparing and contrasting the public policy characteristics of the EU countries with patterns typical of the families of nations making up the wider European polity, and in countries outside Europe.Less
Using cross-national data on various aspects of public expenditure development largely from the Organization for Economic Cooperation and Development (OECD) and Eurostat sources, this chapter explores whether the character of public intervention in the United States is distinctively different from that of the countries constituting the European Union (EU), and whether patterns of public intervention in the United States and Europe are becoming more or less alike over recent decades. The chapter addresses these questions by identifying the extent of homogeneity or heterogeneity in European public expenditure outcomes by comparing and contrasting the public policy characteristics of the EU countries with patterns typical of the families of nations making up the wider European polity, and in countries outside Europe.
G. C. Peden
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198207078
- eISBN:
- 9780191677472
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198207078.003.0009
- Subject:
- History, British and Irish Modern History, Economic History
The goals of the managed economy were maintenance of Britain's power and influence, full employment, stable prices, a sound balance of payments, and increased prosperity. Effective management of the ...
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The goals of the managed economy were maintenance of Britain's power and influence, full employment, stable prices, a sound balance of payments, and increased prosperity. Effective management of the economy depended upon effective control of public expenditure, the level of which limited the scope for tax reliefs, although Treasury officials were keen to reduce high rates of direct taxation so as to encourage enterprise and investment in the private sector. Inflationary influences in the economy included the boom in private investment from 1954 to 1957 and trade unionists' demands for higher wages. The traditional system of public finance was under strain, and it is not surprising that at the end of the 1950s the Treasury should have been seeking ways in which to improve its control over expenditure.Less
The goals of the managed economy were maintenance of Britain's power and influence, full employment, stable prices, a sound balance of payments, and increased prosperity. Effective management of the economy depended upon effective control of public expenditure, the level of which limited the scope for tax reliefs, although Treasury officials were keen to reduce high rates of direct taxation so as to encourage enterprise and investment in the private sector. Inflationary influences in the economy included the boom in private investment from 1954 to 1957 and trade unionists' demands for higher wages. The traditional system of public finance was under strain, and it is not surprising that at the end of the 1950s the Treasury should have been seeking ways in which to improve its control over expenditure.
Fred Campano and Dominick Salvatore
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195300918
- eISBN:
- 9780199783441
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195300912.003.0012
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter focuses on the role of the government in ensuring basic needs and how that may be managed through income taxes and public expenditure. The analysis is mainly done in the framework of ...
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This chapter focuses on the role of the government in ensuring basic needs and how that may be managed through income taxes and public expenditure. The analysis is mainly done in the framework of income flows to and from quantiles of households.Less
This chapter focuses on the role of the government in ensuring basic needs and how that may be managed through income taxes and public expenditure. The analysis is mainly done in the framework of income flows to and from quantiles of households.
Douglas Wass
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199534746
- eISBN:
- 9780191715884
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199534746.003.0003
- Subject:
- Economics and Finance, Economic History
This chapter describes the evolution of economic policy in the face of a deteriorating situation. It shows how early in 1975 the Treasury came to recognize that a significant shift of policy was ...
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This chapter describes the evolution of economic policy in the face of a deteriorating situation. It shows how early in 1975 the Treasury came to recognize that a significant shift of policy was required involving a sharp break in hitherto established practice. It describes the important role which financial markets were now playing in the behaviour of the economic variables and shows that what was required was a big improvement in public finances, a determined attack on inflation, and suitable measures to restore equilibrium in the balance of payments. The chapter reveals growing tensions within the Cabinet over the course of policy and its relevance to the economic slump, which was now afflicting the economy. These tensions were acute in the area of policy to deal with wage inflation and the chapter goes into detail how this issue was eventually resolved in a vigorous reinforcement of the Social Contract. Public expenditure continued to be a dominant issue for the Treasury and this concern was reinforced at the end of 1975 when the UK sought a relatively small drawing from the IMF — a step which brought the public finances to the forefront.Less
This chapter describes the evolution of economic policy in the face of a deteriorating situation. It shows how early in 1975 the Treasury came to recognize that a significant shift of policy was required involving a sharp break in hitherto established practice. It describes the important role which financial markets were now playing in the behaviour of the economic variables and shows that what was required was a big improvement in public finances, a determined attack on inflation, and suitable measures to restore equilibrium in the balance of payments. The chapter reveals growing tensions within the Cabinet over the course of policy and its relevance to the economic slump, which was now afflicting the economy. These tensions were acute in the area of policy to deal with wage inflation and the chapter goes into detail how this issue was eventually resolved in a vigorous reinforcement of the Social Contract. Public expenditure continued to be a dominant issue for the Treasury and this concern was reinforced at the end of 1975 when the UK sought a relatively small drawing from the IMF — a step which brought the public finances to the forefront.
Douglas Wass
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199534746
- eISBN:
- 9780191715884
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199534746.003.0004
- Subject:
- Economics and Finance, Economic History
This chapter goes through the climactic events of 1976 up to the point where the negotiations with the IMF began, starting with the continuing uncertainty in the minds of some members of the Cabinet ...
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This chapter goes through the climactic events of 1976 up to the point where the negotiations with the IMF began, starting with the continuing uncertainty in the minds of some members of the Cabinet about the Treasury's preferred economic strategy. The option of an ‘alternative strategy’ involving a more autarkic and dirigiste economy is explored, including the construction of the Budget with its bait to the TUC of tax cuts in return for continuing wage restraint. The bear attack on sterling, beginning in March, is examined as are the reasons for its continuance through the summer months. The various recipes for handling it are discussed — continuing intervention in support of sterling with resources backed by overseas central banks and a significant reduction in public expenditure to reassure overseas holders of sterling. Some systemic changes in the way public expenditure was controlled — the introduction of cash limits and the rigorous enforcement of the contingency reserve — are described. But the main focus of this part of the chapter is on the controversy surrounding proposals to reduce public expenditure programmes in the years ahead. The chapter concludes with an account of how and why the government decided to apply to the IMF for a substantial credit and of the expectations in Whitehall of the likely conditions for the credit.Less
This chapter goes through the climactic events of 1976 up to the point where the negotiations with the IMF began, starting with the continuing uncertainty in the minds of some members of the Cabinet about the Treasury's preferred economic strategy. The option of an ‘alternative strategy’ involving a more autarkic and dirigiste economy is explored, including the construction of the Budget with its bait to the TUC of tax cuts in return for continuing wage restraint. The bear attack on sterling, beginning in March, is examined as are the reasons for its continuance through the summer months. The various recipes for handling it are discussed — continuing intervention in support of sterling with resources backed by overseas central banks and a significant reduction in public expenditure to reassure overseas holders of sterling. Some systemic changes in the way public expenditure was controlled — the introduction of cash limits and the rigorous enforcement of the contingency reserve — are described. But the main focus of this part of the chapter is on the controversy surrounding proposals to reduce public expenditure programmes in the years ahead. The chapter concludes with an account of how and why the government decided to apply to the IMF for a substantial credit and of the expectations in Whitehall of the likely conditions for the credit.
Paul Mosley
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199692125
- eISBN:
- 9780191739286
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199692125.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental, Macro- and Monetary Economics
Given political stability and the existence of a pro-poor political coalition, what actions have achieved a sustained fall in poverty? This chapter focuses on fiscal policies, which have the ...
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Given political stability and the existence of a pro-poor political coalition, what actions have achieved a sustained fall in poverty? This chapter focuses on fiscal policies, which have the political merit of being targetable on particular interest groups. One pro-poor pathway (represented by Uganda and Indonesia within the study’s sample) orientates expenditure policies towards low-incomerural producers and thus towards green revolution-type policies. A second (represented by Ghana, Argentina, Russia and, after 2006, Bolivia) orientates expenditure policies towards low-income consumers in the urban labour force, motivating a shift of expenditure towards social protection and housing expenditures. Taxation can also be reoriented for political motives towards the poor, as in Uganda, Ghana, Bolivia, and Argentina. However, taxation imposes a political dilemma because it is politically unpopular and the temptation in a weak state is to use aid rather than tax to finance expenditure, which over the long term weakens the state further. The chapter illustrates various ways out of this dilemma, including closing of tax loopholes, user charges, depoliticisation by establishment of an independent revenue authority, and politically imaginative sequencing.Less
Given political stability and the existence of a pro-poor political coalition, what actions have achieved a sustained fall in poverty? This chapter focuses on fiscal policies, which have the political merit of being targetable on particular interest groups. One pro-poor pathway (represented by Uganda and Indonesia within the study’s sample) orientates expenditure policies towards low-incomerural producers and thus towards green revolution-type policies. A second (represented by Ghana, Argentina, Russia and, after 2006, Bolivia) orientates expenditure policies towards low-income consumers in the urban labour force, motivating a shift of expenditure towards social protection and housing expenditures. Taxation can also be reoriented for political motives towards the poor, as in Uganda, Ghana, Bolivia, and Argentina. However, taxation imposes a political dilemma because it is politically unpopular and the temptation in a weak state is to use aid rather than tax to finance expenditure, which over the long term weakens the state further. The chapter illustrates various ways out of this dilemma, including closing of tax loopholes, user charges, depoliticisation by establishment of an independent revenue authority, and politically imaginative sequencing.
Colin Thain and Maurice Wright
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198277842
- eISBN:
- 9780191684203
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198277842.003.0003
- Subject:
- Political Science, UK Politics, Political Economy
The Public Expenditure Survey Committee (PESC) system originated in the 1950s and its development is traced in this chapter emphasising the system's context in the planning and controlling of public ...
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The Public Expenditure Survey Committee (PESC) system originated in the 1950s and its development is traced in this chapter emphasising the system's context in the planning and controlling of public expenditure in Britain. This is referenced through the publication of the Plowden Report in 1961 and also includes an introduction to the proposed cash planning in 1982. This chapter argues that the process was a gradual one and the new planning and control system's principles were rooted in the official Treasury's response to changing government objectives in the 1950s. The gradual development of PESC was abruptly halted in the middle of 1970s as the need to cut expenditure and restore control coincided with the Keynesian principle's crumble. After the planning of how PESC was to be done and implemented, monitoring and cash control were then the dominant characteristics of the process.Less
The Public Expenditure Survey Committee (PESC) system originated in the 1950s and its development is traced in this chapter emphasising the system's context in the planning and controlling of public expenditure in Britain. This is referenced through the publication of the Plowden Report in 1961 and also includes an introduction to the proposed cash planning in 1982. This chapter argues that the process was a gradual one and the new planning and control system's principles were rooted in the official Treasury's response to changing government objectives in the 1950s. The gradual development of PESC was abruptly halted in the middle of 1970s as the need to cut expenditure and restore control coincided with the Keynesian principle's crumble. After the planning of how PESC was to be done and implemented, monitoring and cash control were then the dominant characteristics of the process.
Robin R. Churchill and Daniel Owen
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199275847
- eISBN:
- 9780191706080
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199275847.003.0008
- Subject:
- Law, EU Law, Environmental and Energy Law
This chapter addresses public expenditure in the fisheries sector. It deals first with two EC financial instruments: the European Fisheries Fund (EFF) and Regulation 861/2006. The latter is ...
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This chapter addresses public expenditure in the fisheries sector. It deals first with two EC financial instruments: the European Fisheries Fund (EFF) and Regulation 861/2006. The latter is complementary in purpose to the EFF and is sometimes referred to as ‘the second fisheries instrument’, i.e., second to the EFF. The EFF and Regulation 861/2006 are not the only sources of EC funding for the Common Fisheries Policy (CFP). A further important source is the European Agricultural Guarantee Fund (EAGF). The EAGF funds the market intervention system (i.e., permanent withdrawal, ‘carry-over’, ‘private storage’, and the ‘compensatory allowance’ for tuna producers) as well as providing some other funding to producer organizations. Some other Community financial instruments provide support in connection with fisheries, albeit not under the CFP. After dealing with the EFF and Regulation 861/2006, the chapter moves on to consider State aid, i.e., aid granted by Member States to the fishing industry other than in conjunction with funds from any EC financial instrument.Less
This chapter addresses public expenditure in the fisheries sector. It deals first with two EC financial instruments: the European Fisheries Fund (EFF) and Regulation 861/2006. The latter is complementary in purpose to the EFF and is sometimes referred to as ‘the second fisheries instrument’, i.e., second to the EFF. The EFF and Regulation 861/2006 are not the only sources of EC funding for the Common Fisheries Policy (CFP). A further important source is the European Agricultural Guarantee Fund (EAGF). The EAGF funds the market intervention system (i.e., permanent withdrawal, ‘carry-over’, ‘private storage’, and the ‘compensatory allowance’ for tuna producers) as well as providing some other funding to producer organizations. Some other Community financial instruments provide support in connection with fisheries, albeit not under the CFP. After dealing with the EFF and Regulation 861/2006, the chapter moves on to consider State aid, i.e., aid granted by Member States to the fishing industry other than in conjunction with funds from any EC financial instrument.
Richard M. Goodwin
- Published in print:
- 1990
- Published Online:
- November 2003
- ISBN:
- 9780198283355
- eISBN:
- 9780191596315
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198283350.003.0008
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The control variable in the previous chapter is interpreted here as public net income‐generating expenditure. In the absence of compensatory policy, the model of the previous chapter results in a ...
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The control variable in the previous chapter is interpreted here as public net income‐generating expenditure. In the absence of compensatory policy, the model of the previous chapter results in a highly irregular time series and maximum unemployment of 12%. In contrast, almost perfect smoothing is possible by large and rapid intervention, based upon derivative control, at the early stages of the fluctuation. The addition of proportional control can ensure that equilibrium unemployment falls gradually to an appropriately low level. Problems of implementation are discussed.Less
The control variable in the previous chapter is interpreted here as public net income‐generating expenditure. In the absence of compensatory policy, the model of the previous chapter results in a highly irregular time series and maximum unemployment of 12%. In contrast, almost perfect smoothing is possible by large and rapid intervention, based upon derivative control, at the early stages of the fluctuation. The addition of proportional control can ensure that equilibrium unemployment falls gradually to an appropriately low level. Problems of implementation are discussed.
Colin Thain and Maurice Wright
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198277842
- eISBN:
- 9780191684203
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198277842.003.0012
- Subject:
- Political Science, UK Politics, Political Economy
The processes of planning and controlling public expenditure have evolved by the late 1980s and 1990s up to the decision to introduce the Unified Budget and the New Control Total in 1992. This ...
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The processes of planning and controlling public expenditure have evolved by the late 1980s and 1990s up to the decision to introduce the Unified Budget and the New Control Total in 1992. This chapter explains the changes made through the timeline of public expenditure control. Previous practices include the introduction of cash limits in 1976 until volume planning was abandoned and cash planning was introduced in 1982 and became the turning point for the Public Expenditure Survey (PES). The annual Medium Term Financial Strategy was also one of the past measures as well as the centrally determined pay factors which were abolished, separating programme and running costs expenditure and the impact of fiscal crises in 1992 which verified the differences of the PES from those in the 1970s. These changes are yet to be seen if they have a lasting effect on the decision-making process as the state of the PES in the 1990s is assessed in this chapter including the immediate effects of changes in 1992.Less
The processes of planning and controlling public expenditure have evolved by the late 1980s and 1990s up to the decision to introduce the Unified Budget and the New Control Total in 1992. This chapter explains the changes made through the timeline of public expenditure control. Previous practices include the introduction of cash limits in 1976 until volume planning was abandoned and cash planning was introduced in 1982 and became the turning point for the Public Expenditure Survey (PES). The annual Medium Term Financial Strategy was also one of the past measures as well as the centrally determined pay factors which were abolished, separating programme and running costs expenditure and the impact of fiscal crises in 1992 which verified the differences of the PES from those in the 1970s. These changes are yet to be seen if they have a lasting effect on the decision-making process as the state of the PES in the 1990s is assessed in this chapter including the immediate effects of changes in 1992.
G. C. Peden
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198207078
- eISBN:
- 9780191677472
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198207078.003.0004
- Subject:
- History, British and Irish Modern History, Economic History
In the aftermath of the First World War, the Treasury collaborated, to a greater or lesser degree, with the Bank of England on monetary policy, and with the Foreign Office on reparations and war ...
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In the aftermath of the First World War, the Treasury collaborated, to a greater or lesser degree, with the Bank of England on monetary policy, and with the Foreign Office on reparations and war debts. Inflation in 1919–1920 generated political pressure, not only for a restoration of Treasury control over public expenditure but also for greater Treasury control over the Civil Service than had existed in 1914. The quest for major economies in public expenditure led the Treasury to play an active part in policy making, both with regard to defence and social services. The Treasury and the Bank of England conducted a conscious policy of deflation to restore control over the monetary system and to move towards restoration of the supposedly automatic gold standard. The Treasury was determined that the public sector should not crowd out productive private investment, and propounded the view that loan-financed public works would not reduce unemployment. Over the period 1919–1923, budgets were brought into balance largely by reducing public expenditure.Less
In the aftermath of the First World War, the Treasury collaborated, to a greater or lesser degree, with the Bank of England on monetary policy, and with the Foreign Office on reparations and war debts. Inflation in 1919–1920 generated political pressure, not only for a restoration of Treasury control over public expenditure but also for greater Treasury control over the Civil Service than had existed in 1914. The quest for major economies in public expenditure led the Treasury to play an active part in policy making, both with regard to defence and social services. The Treasury and the Bank of England conducted a conscious policy of deflation to restore control over the monetary system and to move towards restoration of the supposedly automatic gold standard. The Treasury was determined that the public sector should not crowd out productive private investment, and propounded the view that loan-financed public works would not reduce unemployment. Over the period 1919–1923, budgets were brought into balance largely by reducing public expenditure.
Colin Thain and Maurice Wright
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198277842
- eISBN:
- 9780191684203
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198277842.003.0006
- Subject:
- Political Science, UK Politics, Political Economy
It was only since 1947 that the British Treasury has been formally responsible for economic policy coordination as its main functions were on raising of revenue through its subordinate departments of ...
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It was only since 1947 that the British Treasury has been formally responsible for economic policy coordination as its main functions were on raising of revenue through its subordinate departments of Inland Revenue and Customs and controlling public expenditure. This chapter includes a thorough definition of the Treasury's role in planning and controlling public expenditure as set in its annual Department Report as well as a tally of ministerial responsibilities and duration of service. The Treasury possesses an advantage over other departments in the sense of perspective as the organisation is uniquely placed to see the ‘bigger picture’ of expenditure functions. Expenditure Controllers are professional administrators and their skills and qualifications are outlined in this chapter with an overview on how they deal with changes in the system of planning and controlling public expenditure.Less
It was only since 1947 that the British Treasury has been formally responsible for economic policy coordination as its main functions were on raising of revenue through its subordinate departments of Inland Revenue and Customs and controlling public expenditure. This chapter includes a thorough definition of the Treasury's role in planning and controlling public expenditure as set in its annual Department Report as well as a tally of ministerial responsibilities and duration of service. The Treasury possesses an advantage over other departments in the sense of perspective as the organisation is uniquely placed to see the ‘bigger picture’ of expenditure functions. Expenditure Controllers are professional administrators and their skills and qualifications are outlined in this chapter with an overview on how they deal with changes in the system of planning and controlling public expenditure.
Gerardo P. Sicat and Rahimaisa D. Abdula
- Published in print:
- 2003
- Published Online:
- November 2003
- ISBN:
- 9780195158984
- eISBN:
- 9780199869107
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195158989.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Reviews the Philippine public finance experience over two decades from 1980 to 2000. It notes that in some years, the government's dominant fiscal problems were caused, at least initially, by ...
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Reviews the Philippine public finance experience over two decades from 1980 to 2000. It notes that in some years, the government's dominant fiscal problems were caused, at least initially, by external economic shocks, with domestic adjustments to them – including political upheavals – resulting in a unique trajectory of development experience. Its review of public finance history covers operational deficits and fiscal stabilization, public expenditure, revenue mobilization, and “hidden” deficits from quasi‐fiscal activities. The study first asserts that the country's fiscal strategy has been influenced for the most part by the need to rein in domestic expenditure to match the level of available fiscal resources. Next, it argues that the growth in public expenditure has largely been constrained by the scarcity of fiscal resources. Finally, it shows that the strengthening tax administration remains a sticking point, as nontax revenues are only temporary measures to bridge the expenditure gap.Less
Reviews the Philippine public finance experience over two decades from 1980 to 2000. It notes that in some years, the government's dominant fiscal problems were caused, at least initially, by external economic shocks, with domestic adjustments to them – including political upheavals – resulting in a unique trajectory of development experience. Its review of public finance history covers operational deficits and fiscal stabilization, public expenditure, revenue mobilization, and “hidden” deficits from quasi‐fiscal activities. The study first asserts that the country's fiscal strategy has been influenced for the most part by the need to rein in domestic expenditure to match the level of available fiscal resources. Next, it argues that the growth in public expenditure has largely been constrained by the scarcity of fiscal resources. Finally, it shows that the strengthening tax administration remains a sticking point, as nontax revenues are only temporary measures to bridge the expenditure gap.
Colin Thain and Maurice Wright
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198277842
- eISBN:
- 9780191684203
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198277842.003.0023
- Subject:
- Political Science, UK Politics, Political Economy
The Treasury continues to exercise detailed control of public spending by scrutinizing management plans. This chapter examines how effective is the Treasury's control in these issues and other ...
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The Treasury continues to exercise detailed control of public spending by scrutinizing management plans. This chapter examines how effective is the Treasury's control in these issues and other changes to the system. There are also difficulties that arise from the Treasury's act of implementing tight control as there are constitutional and practical limits imposed on their responsibility. Another issue the Treasury has to deal with is the tension in balancing central control of the aggregate with discretionary authority for departmental managers to make and allocate budgets in decentralized departmental financial systems. Broad systemic factors are considered when obtaining additional resources as there are rules of the game when it comes to bidding, negotiating, and of monitoring and controlling the use of budget.Less
The Treasury continues to exercise detailed control of public spending by scrutinizing management plans. This chapter examines how effective is the Treasury's control in these issues and other changes to the system. There are also difficulties that arise from the Treasury's act of implementing tight control as there are constitutional and practical limits imposed on their responsibility. Another issue the Treasury has to deal with is the tension in balancing central control of the aggregate with discretionary authority for departmental managers to make and allocate budgets in decentralized departmental financial systems. Broad systemic factors are considered when obtaining additional resources as there are rules of the game when it comes to bidding, negotiating, and of monitoring and controlling the use of budget.
G. C. Peden
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198207078
- eISBN:
- 9780191677472
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198207078.003.0008
- Subject:
- History, British and Irish Modern History, Economic History
The period 1945–1951 saw the Treasury become the central department of government again, with enhanced responsibility for co-ordinating economic policy. However, the enlargement of the Treasury's ...
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The period 1945–1951 saw the Treasury become the central department of government again, with enhanced responsibility for co-ordinating economic policy. However, the enlargement of the Treasury's functions was balanced by a more equal relationship with the rest of Whitehall through a system of interdepartmental committees. Moreover, the Bank of England retained considerable autonomy with regard to supervision of the monetary system. The immediate aims of economic policy were to finance post-war reconstruction, hold down excess demand, and restore the external balance — hence Treasury support for priority for investment in industry and agriculture rather than social services. John Maynard Keynes's ideas influenced monetary policy and budgetary policy, but so too did other considerations, such as the size of the national debt and the need to control public expenditure. There was no doubt that there was excess demand in an economy that was experiencing full employment, and therefore Keynesian analysis pointed to restriction of government expenditure, reinforcing Treasury arguments about the need to establish priorities in government policy.Less
The period 1945–1951 saw the Treasury become the central department of government again, with enhanced responsibility for co-ordinating economic policy. However, the enlargement of the Treasury's functions was balanced by a more equal relationship with the rest of Whitehall through a system of interdepartmental committees. Moreover, the Bank of England retained considerable autonomy with regard to supervision of the monetary system. The immediate aims of economic policy were to finance post-war reconstruction, hold down excess demand, and restore the external balance — hence Treasury support for priority for investment in industry and agriculture rather than social services. John Maynard Keynes's ideas influenced monetary policy and budgetary policy, but so too did other considerations, such as the size of the national debt and the need to control public expenditure. There was no doubt that there was excess demand in an economy that was experiencing full employment, and therefore Keynesian analysis pointed to restriction of government expenditure, reinforcing Treasury arguments about the need to establish priorities in government policy.
James A. Mirrlees
- Published in print:
- 2006
- Published Online:
- October 2011
- ISBN:
- 9780198295211
- eISBN:
- 9780191685095
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198295211.003.0016
- Subject:
- Economics and Finance, Public and Welfare, Development, Growth, and Environmental
This chapter discusses arguments for public expenditure. It includes discussions on the optimal income tax theory, whether public expenditure is too high or not, and an examination of the UK ...
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This chapter discusses arguments for public expenditure. It includes discussions on the optimal income tax theory, whether public expenditure is too high or not, and an examination of the UK government as a linear tax system.Less
This chapter discusses arguments for public expenditure. It includes discussions on the optimal income tax theory, whether public expenditure is too high or not, and an examination of the UK government as a linear tax system.
Douglas Wass
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199534746
- eISBN:
- 9780191715884
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199534746.003.0002
- Subject:
- Economics and Finance, Economic History
This chapter looks at the origins of the inflation which struck the developed world in the early 1970s, and the huge balance of payments imbalances which followed the explosion of oil prices in 1973. ...
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This chapter looks at the origins of the inflation which struck the developed world in the early 1970s, and the huge balance of payments imbalances which followed the explosion of oil prices in 1973. It describes what the internationally prescribed responses were and recounts how the policy followed by the Heath Government came to be defeated by the reactions of organised labour. It goes on to describe what the policies of the incoming Labour Government were in March 1974 and how they contributed to a compounding of the economic problems. It scrutinizes what the Treasury advice to ministers was to restore balance to the economy — controlling public expenditure, financing the balance of payments, and achieving equilibrium in the trade balance. It argues that although some progress was made in all these areas the problem of inflation was not addressed and the Government continued to pin its faith on the Social Contract it had concluded with the TUC.Less
This chapter looks at the origins of the inflation which struck the developed world in the early 1970s, and the huge balance of payments imbalances which followed the explosion of oil prices in 1973. It describes what the internationally prescribed responses were and recounts how the policy followed by the Heath Government came to be defeated by the reactions of organised labour. It goes on to describe what the policies of the incoming Labour Government were in March 1974 and how they contributed to a compounding of the economic problems. It scrutinizes what the Treasury advice to ministers was to restore balance to the economy — controlling public expenditure, financing the balance of payments, and achieving equilibrium in the trade balance. It argues that although some progress was made in all these areas the problem of inflation was not addressed and the Government continued to pin its faith on the Social Contract it had concluded with the TUC.
