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The role of government, Central government - Coggle Diagram
The role of government
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As a producer
Merit goods such as education, healthcare & public goods including national defence & security and street lighting
State owned enterprises may run airports, banks & television station and provide public transport, postal services & essential items such as power(TMB)
As a provider
Provide goods and services direct to certain groups of people such as low income, children, old people, people with severe disabilities & people developing new products.
As a consumer
Current expenditure are recurrent gov spending on goods & services that are consumed within each financial year. For example, day to day running costs of govern offices.
Capital expenditures are gov investments in long-lived productive assets such as roads, dams, schools and other public infrastructure
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Central government
Def: National gov of a country and will be responsible for planning & decision-making on issues that affect the whole country.
For example:
- managing the nation's currency
- maintaining diplomatic and trading relationship with other countries
- negotiating international treaties
- representing the interest of their country in global organizations