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Summary BTEC Business Level 3 Unit 38 P3

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BTEC Business Level 3 Unit 38 this will help you to the get a merit USE IT SENSIBLE DO NOT COPY

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Jaydip Pravinkumar Unit 38 P3


Unit 38 P3 - Government Spending

Government spending refers to the distribution of finance within the economy controlled by the
government. This expenditure includes all government consumption, investment, and transfer
payments in areas such as the NHS, Benefits, Law enforcement, and infrastructure or services for
example roads, fire service, police and Hospitals, schools and educations.




https://upload.wikimedia.org/wikipedia/commons/3/37/UK-Government-Expenditure-2016-17.jpg

The pie chart above shows all the government spending that the government spends and by how
much it also shows that how much percentage on the areas. The biggest amount of the government
spending is the social protection which consists of the police, and fire safety and others.
Government spending is often referred to the public spending set by the government. The finances
for this type of the spending are gathered through the tax, which allows for the contribution of the
money to be invested in the essential services that are needed by every resident within the area. By
gathering the investment through tax. It allows for the services to be available to everyone, which
overall allows for the safer environment for the public.

The government spending is spent in different areas and below there is the areas where the
government spending occurs. The total government spending for United Kingdom is £772 billion and
below are the broken down in which area how much is spent and what percentage is spent in which
area and why?

1. The first and the most government spending occur is the social protection which consists of
pensions, tax credits and other benefits. And in the year 16-17 the government spent £240
billion on the social protection which includes giving the old people who can’t work pensions
and also the tax credit where the people are paid back the tax credit because they are
paying tax credit. And also the people who are not working and have children’s they are
entitled to benefits which include child benefits and many others. This is given so that they
can survive within the economy and 31.1% of the government spending is spent on the
social protection.

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