Controlling Public Spending in Times of Plenty

Abstract

Most economists, without much prompting, would claim that the annual rate of growth in public expenditure since 1990 has been 'excessive'. However, the case is distinctly underwhelming if it relies on standard macroeconomic arguments. The general Government Deficit (GGD) has been kept below 3% of gdp each year since 1987 and this year we're on track for a budget surplus. By the end of the year the debt-gdp ratio is likely to be about 66%- below the EU average and almost 30 points lower than in 1989.deficit; debt