ABSTRACT
In seeking to devise ways of reducing government expenditure growth, the economist only possesses a limited range of skills which might enable him to put forward useful suggestions. Economic analysis of the political decision-making process may therefore be of some assistance in identifying schemes for expenditure control which are feasible. Before embarking on the economic analysis of government expenditure growth and the problems that this growth has created in the United Kingdom, it may be useful to look briefly at some of the characteristics of that growth which require explanation. The chapter provides a brief account of British attempts to create the conditions which will favour a reduction in that growth. Economists have devised a whole range of schemes designed to remove X-inefficiency in the provision of services provided by Government departments or agencies. Treasury is a rough-and-ready attempt to follow a general rule of expenditure growth.
