public sector - a sector of the economy that is run by the government, national debt - this is the level of government borrowing, capital spending - this helps create productive capacity, building a new hospital - an example of capital spending, current spending - this is day to day running costs, paying civil servants wages - an example of current spending, transfer payments - given to an individual or firm with no economic benefit in return, pension payments - an example of a transfer payment, public goods - provided for the benefit of everyone with the characteristics of non rivalry and non excludability, defence and street lighting - examples of public goods, merit goods - socially desirable as if left to private sector they would be under developed, state education and NHS - examples of merit goods,

Government Finance

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