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In time-honoured fashion, an amount disproportionate cuts George Osborne will fall on public investment, instead of current expenditure.

But there is also a matter of perspective. A large part of the commentariat describes the imminent cuts "savage" or "draconian".However, some try to say what a fuss for rien.Qui is correct?

In a sense, both are.Deniers can reasonably noted that expenses are always defined in terms of money even after 2015/16 total government spending cuts will be ￡ 60bn higher than in 2010-2011. But in an economy with a continued increase in the price level, this is hardly a telling point.

More broadly, in real terms the planned reductions still leave public expenditure above the level it was at in 2008/9. Thus a single level reductions are not drastic at all.

The world will not end in response to these reductions and the standard of living do not immerse themselves.They are not as the beginning of a war or an outbreak of plague RTI ' on the other hand, what in the modern economy is? When they occur, we rightly make a fuss about recessions and even in the worst case most people keep their employees and spends most of the normal life.

Saying that cuts in the public sector is not to much because they return only when he was two years ago, it of a bit like saying that we are go cut Xpc standard of living of the consumer, but don't worry public spending, it only take you back to the standard of living you had two years ago and it was not too bad then, isn't it?Most people would not see things this way.

Of course, even after reductions, expenditure will be always mean higher was profligacy work starts. But sections essentially reversed higher public spending which took place in the work.lthis which means that you'll be disappointed if you are looking for a significant decline in share of the economy absorbed by public spending trend growth.

Even after the reductions in five years the share of public expenditure in GDP is just below 40pc.It will be well below its peak of 47pc, but still well above the recent low 36pc registered in 1999-2000 and well short of right, the curator to lay the groundwork for significantly lower rates of personal taxation ambitions.

To make real progress on this is a job for the next Parliament.It will involve the public sector and public expenditure reform retained, combined with economic growth continued soutenue.Mais would be unlikely to require a repetition of the cuts now implemented.

In some respects immediate pain is not as bad, as suggested by the bare numbers.In time-honoured fashion, a disproportionate amount of the cuts will fall on public investment, instead of current expenditure.Indeed, current actual only should decrease by topic 1pc five ans.Cela may seem much, but he likens to a long-term 3pc growth rate.Even in the context of Mrs. Thatcher real current expenses rose by 1. 7pc per year.

Furthermore, these figures include spending on debt interest and social security, which should go to hausse.à exclusion of these means that during the next five years, the other bits of current public expenditure are defined in the fall 7pc in real terms.

The Distributor is even more impressive when take you into account the commitment of the Government to protect health-care costs and help overseas .more five unprotected departments could see average actual words 25pc cuts costs.

On this measure, the planned reductions are deeper that were imposed by the work in the mid-1970s or Mrs Thatcher years 1980.En addition, cuts mean compared to the level that public spending would reach if it aboard amounting to its average long term just below 3pc, 2015 2016 will it approximately ￡ 150bn, or 20pc per year more low .c ' is big enough for me.

Mind you, a different standard reductions are not important of tout.La most of what will be announced this week had been implicit in the workplans .c ' is just that the previous Government had yet to specify exactly where the axe a result chute.Par most opprobrium that will smite the Government would have fallen on the job.

As Ministers try to bear the hat that will be thrown at them, it is perhaps of scant comfort.

Roger.Bootle@capitaleconomics.com

Roger Bootle manages the Director of economic capital and economic adviser to the Deloitte.

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