Wednesday, 14 July 2004

Comprehensive spending review

Within the past week the Chancellor, Gordon Brown, outlined the government's spending plans for the forthcoming financial years. More spending was granted to health, education, the armed forces and other public services. One notable thing is that over 100,000 civil servants are to be made redundant, since New Labour believe that cutting 'waste' and bureaucracy is the key to improving public services. The Conservatives share the same beliefs, but Mr. Letwin (the Tory shadow Chancellor) accused Brown of borrowing 'out of his means.'

As a libertarian, I feel public expenditure is WAY too high. If (somehow) a Chancellor in a libertarian government compiled and presented a Budget, then I would like public expenditure to be approximately 10% of GDP. Personally I think this is a fair figure, especially if the state is limited to the police, armed forces, courts, roads and the money supply (and perhaps determining equitable market shares).