Critically analyze how successful the British government's use of Spending Reviews has been as a way of making government more

Critically analyze how successful the British government
Masters
Essay
Finance & Accounting
Pages 10 (2510 words)
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British government’s use of Spending Reviews Name: Institution: Date of submission: A spending review is a process which is initiated and controlled by the treasury department. The process is responsible for government- resource allocation and greatly depends on the priorities of the government at that point in time…

Introduction

This essay seeks to critically analyze the success of British government in using spending review in the execution of government strategies. The labor government has been using spending reviews from 1998 to the year 2007 to set out spending plans. The departmental expenditure limits (DELs) covers the predictable spending of the government. This includes spending on hospitals and schools. Annually managed expenditure (AME) covers the public elements that are driven by demand. Examples include debt interests and social security spending. The spending review cover three years but they occur annually. The last year of a spending review is subject to reassessment in preparation to the next spending review period. The labor government increased spending which necessitated tight spending plans between the April 2008 and March 2011. According to the treasury, the public spending was expected to fall. The fiscal projections indicated that tax receipts were set to be increase over the active three year period. This was the only way to meet the borrowing forecasts of government (Corsetti & Muller 2009). In the previous four years, the labor government had increased public spending. The British government predicted that total managed expenditure (TME) would be ?587 billion in the period between 2007 and 2008. ...
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