Public sector spending amounts to 53 of the GDP.

Higher domestic consumer spending would otherwise create inflationary pressures.

That extra spending means a higher level of nominal GDP (output at market prices).

This will be even more important in the future as China carries out its plan to increase domestic spending, especially spending by Chinese households.

Meanwhile, Sweden and South Korea are now excelling economically on the basis of R D spending of around 3.5 of GDP, while Israel s R D outlays stand at a remarkable 4.7 of GDP.

But expenditure was cut by five percentage points of GDP during the next five years.

Although Reagan could not bring down spending on entitlement programs for retirees, America s non defense discretionary spending was reduced by one third, from 4.7 of GDP in the 1980 to 3.1 in 1988.

In all four countries, there has been a sizeable upward trend in government outlays as a share of GDP

Capital spending and exports, which together account for about 24 of GDP, hold the key to this shift. At just over 10 of GDP, the share of capital spending is well below the peak of nearly 13 in 2000.

When a fiscally responsible government launches a war, it typically cuts back on other domestic expenditures and raises taxes.

Expenditure on education accounts for only approximately 10 of GDP, and most schools are subsidized by the state.

Romney, by contrast, favors limiting overall federal spending, currently 24 of GDP, to 20 , and keeping defense at 4 .

Oil exporters could, in turn, promise to increase domestic consumption expenditure, which would boost imports.

Even after a year of excruciating spending cuts, the budget deficit still exceeds 10 of GDP.

In 2003, general government expenditure amounted to 48.5 of GDP, above the eurozone average.

The Government has resolved to increase public spending in education to at least six per cent of the gross domestic product (GDP).

Aid levels are comparable to GDP, with donors covering roughly two thirds of government expenditure and the entire current account deficit, which amounts to 40 of GDP.

The US currently has the smallest share of government spending in GDP, although it has gained substantially on Canada because of the spending explosion since 2000 President George W. Bush s military spending and Obama s social spending

Canada, in the past two decades, has decreased spending by 8 of GDP and similarly prospered.

The increase in Canada s public spending as a share of GDP since 2000 has been the smallest of the four countries

In 2004, state spending for education amounted to 3.6 of the GDP, or 13 of the consolidated state budget.

Government spending on health has been increased, and it will be raised to two to three per cent of GDP over the next year.

In 2007, domestic spending on AIDS is projected to be at least 20 per cent higher than in 2004, mainly due to the increase in public expenditure for treatment and care, which could decrease out of pocket expenditures.

In March 2000, EU leaders meeting in Lisbon set the goal of making Europe the world s most competitive and dynamic knowledge based economy by 2010, and two years later they agreed that investment in R D must reach 3 of GDP by 2010.

It must pledge to boost domestic expenditures, reduce its external surplus, and accept an increase in the ECB s inflation target.

Between 2006 and 2009, the government increased social spending on social welfare and education from 2.6 to 5.2 of its GDP.

Local governance remained the primary focus of UNCDF expenditure in 2004, accounting for 70 per cent of the total.

The contribution of investment expenditure growth to GDP growth was moderate in the latter, but impressive in Lebanon.

Over spending countries such as the United States and other Anglo Saxon economies that were over leveraged and running current account deficits now must save more and spend less on domestic demand.

That meant that the acceleration of growth in consumer spending accounted for nearly 100 of the increase in GDP, with the rise in durable spending accounting for almost half of that increase.

The EU budget amounts to about 1 of GDP, just one fortieth of total public expenditure. No one, not even die hard European integrationists, imagines that it can reach 5 of GDP (it is more likely to decrease).

Japan armed itself only lightly (restricting military expenditures to about 1 of GNP), and focused on economic growth.

It slashed public expenditure and capped spending at 35 of GDP the same level as in the United States.

In small, open economies, higher deficits are unlikely to sustain domestic output, because most additional expenditure goes toward imports.

A one dollar spending cut was believed to reduce GDP by more than one dollar, so that fiscal retrenchment was economically costly (while, conversely, stimulus was effective).

But capital spending must exceed that peak if US businesses are to be equipped with state of the art capacity, technology, and private infrastructure that will enable them to recapture market share at home and abroad.

Meanwhile, higher public spending on capital investment and other special procurements will boost domestic demand.

The government spends 4.9 of the country's GDP on the military, and one out of every four dollars of government spending is spent on defence.

Spending on the space program peaked in 1989, when its budget totaled 6.9 billion rubles, amounting to 1.5 of the Soviet Unions gross domestic product.

Decomposition estimates of GDP expenditure growth in 2004 indicate that Egypt, Jordan and Yemen experienced consumption led growth.

This would require politically difficult shifts in consumption and investment, with America increasing its savings and China increasing domestic consumption.

The US in the 1980 s and 1990 s reduced spending by 5 of GDP and balanced its budget while growing strongly.

During the period from 1995 to 2004, social spending rose from 3.2 per cent to approximately 5 per cent of GDP.

For example, China is expected to spend 1.7 billion for family planning in 2005, accounting for one third of all domestic government spending.

Household consumption only accounted for 34 of GDP and total consumption is less than 50 of GDP in 2007. That weakness, however, is institutional and cannot be easily corrected in the short run.