First, spending on high return public investments should be increased.

Likewise, during expansions, higher government spending is more likely to crowd out private spending.

Russian military expenditures have increased by double digit figures in recent years.

But the resulting economic slack gives us the historic opportunity and need to compensate for low consumer spending with increased investment spending on sustainable technologies.

Japanese consumers knew that increases in public spending were temporary, so they did not change their spending habits, rendering the policy ineffectual.

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

There is little waste to cut from domestic spending, and many areas where increases in public spending are needed.

The result was increased US spending and the descent of measured household savings into negative territory.

Making room for increased consumer spending requires reducing the level of exports by allowing the currency to appreciate.

To this we can add the increase in military expenditure and the erosion of multilateralism in the conduct of international affairs.

A targeted support program could increase substantially the efficiency of spending, freeing up resources for education, health, and poverty eradication.

Many governments increase spending excessively in booms, and then are forced to cut back in downturns, thereby exacerbating the cyclical swings.

The problem is not that governments lack resources to spend, but that higher government spending, taxes, and debt are eroding economic growth and future living standards.

Moreover, the additional unemployment would lead to more social welfare spending, thus increasing the need to cut elsewhere or increase taxes.

Last month, Prime Minister Vladimir Putin also announced yet another increase in Russian defense spending.

But Russia s budget for 2010 is still headed for a serious deficit, owing to high spending.

Thus, greater reliance on fiscal policy increased government spending would be necessary.

That requires a substantial increase in research and development into next generation green energy alternatives.

Interest rate cuts can boost borrowing and thus spending on investment and consumption.

In fact, increased spending, which the Keynesians saw simply as boosting aggregate demand, produced distortions.

Since 1979 expenditure on healthcare has been increased significantly to bring it closer to the European Union average.

Unfortunately, past spending pushed up wages, without a commensurate increase in productivity, leaving the heavy spenders indebted and uncompetitive.

What recourse do creditor countries have if the debtor countries become the majority and decide to increase spending?

The rise in consumer spending was not, however, due to higher employment or faster income growth.

Various reforms were proposed to increase spending on the school system and improve the standard of education.

This would help to make the financial resources needed more visible in the national financial instruments such as the Medium Term Expenditures Frameworks (MTEF).

Earmarking of taxes caused current expenditures (especially on social security benefits) to increase along with revenues, reducing the scope for a higher public sector contribution to domestic savings.

In contrast, spending for other objectives for example, research and development on new products and processes increased very little.

Cutting expenditures on the Iraq war and increasing expenditures on education can simultaneously increase output in the short and long run and reduce the deficit.

Increased public sector wage costs mean increased government spending on wages. If this is financed by cutbacks elsewhere in the budget, the main consequence will be only a re distribution of government spending, which is not necessarily inflationary.

If the increase were considered permanent, however, it would make sense to increase spending or reduce tax pressure.

Today, the right wants tax cuts and the left, now reconstituting itself, may push for higher spending.

Growth itself increases tax revenues and reduces the need for social expenditures, such as unemployment benefits.

National spending assessments indicate that affected countries have substantially increased their own financial outlays on AIDS programmes.

At the same time, it was difficult to analyse or control the increasing spending on consultants and temporary assistance.

There is a way out of this trap, but only if we tilt the discussion about how to lower the debt GDP ratio away from austerity higher taxes and lower spending toward debt friendly stimulus increasing taxes even more and raising government expenditure in the same proportion.

Technically, reducing a deficit is a straightforward matter one must either cut expenditures or raise taxes.

But Europeans are showing little taste for increased defense spending, Iraq or no Iraq.

Growing anxiety among China s neighbors, particularly India, has led to remarkable increases in defense spending by other Asian powers as well.

So lower levels of social expenditure could involve only a relatively small increase in inequality and social conflict.

At the same time, high oil prices have enabled higher social spending and infrastructure investment.

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

To address those issues we have promoted a rapid increase in spending for social services to put a stop to growing poverty.

From 2010 onwards, governments started to raise taxes and cut spending in response to growing fears of sovereign default.

Reagan characterized the Soviet Union as an evil empire and increased defense spending to challenge Soviet aggression and capabilities.