# Spending restraint, public (budget restraint)

- Canonical URL: https://www.gerhardmerk.de/spending-restraint-public-budget-restraint
- Post ID: 591396
- Modified: 2023-07-25T21:11:32+00:00
- Language: en

## Definition

In general, the reduction of government spending. - In a narrower sense, the accumulation of tax revenues that have been appropriated but not yet spent. - This set-aside taxpayer money causes a decline in demand in the economy. This in turn - tends to cause an under-utilization of capacities. In view of this, many affected companies will - increase their efforts to boost exports abroad (efforts to boost exports are stepped up). - The export ratio rises with the consequence that, assuming convertibility, - the domestic money supply increases. - This relationship is believed to have been demonstrated in Germany between 1953 and 1957, when unspent tax revenues were accumulated to build up the German federal armed forces. - The debt brake agreed in the EU. - See Treasury. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1