Public Expenditure Growth Rates Forecast in the Budget Are Unrealistically Low, Claim

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    • Jan 2009
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    Public Expenditure Growth Rates Forecast in the Budget Are Unrealistically Low, Claim

    There is an important, yet neglected link between inflation patterns and controlling public expenditure, says Cambridge economist Jonathan Aldred, author of The Skeptical Economist : http://cts.businesswire.com/ct/CT?id...nomist&index=1 . Personalized services such as those provided by the public sector are becoming significantly more expensive in relative terms, and therefore public expenditure as a % of GDP will inevitably grow, contributing to a national debt as high as 100% of GDP by 2015 and a 10% increase in taxes to compensate.Price movements in different sectors of the economy are diverging rapidly, and for the past 12 years service sector inflation has exceeded

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