This article is not concerned with the scale of local authorities' capital expenditure-a large part of which is made on behalf of the central government or to meet the requirements of government policy-but rather with how it is financed. The local authorities meet only a small part of this capital expenditure out of revenue, including special rates for capital purposes. A further small amount is financed by capital grants from the central government. The rest has to be met by borrowing-either from the central government, or from the private capital and money markets, where the local authorities play an important part.
Published on 01 December 1966
Other Quarterly Bulletin 1966 Q4 articles
// Publication // Quarterly Bulletin