The table shows forecast annual government revenue and spending in an economy. All figures are for the same financial year.
| Budget item | Amount (£ billion) |
|---|---|
| Revenue from taxation | 364 |
| Revenue from charges and fees | 16 |
| Current spending | 271 |
| Capital spending | 54 |
| Transfer payments | 73 |
The government will not change its revenue. Calculate the minimum reduction in total spending needed to achieve a budget surplus of £8 billion.
76 exam-style questions on OCR GCSE Economics 3.5 Fiscal policy, covering 3.5.1 Government spending and revenue, 3.5.2 Budget balance, surplus and deficit, 3.5.3 What is fiscal policy, 3.5.4 Calculate effects of taxes and spending, 3.5.5 Analyse effects of taxes and spending, 3.5.6 Costs and benefits of fiscal policy, and 3.5.7 Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.