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Cash Limits

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  • R G Bevan

Abstract

Cash Limits were introduced for the financial year 1976-77 by the Treasury as the dominant basis of control over a wide range of expenditures by central departments; health, local and water authorities; and public corporations. This innovation, which has grown in importance, uses a simple method of controlling expenditure: spending agencies are given a cash which require Treasury sanction. The idea that the Treasury has only recently discovered this form of control offers considerable scope to farceurs. Frugal persons have used such methods for centuries and Adam Smith wrote 'What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom'.

Suggested Citation

  • R G Bevan, 1980. "Cash Limits," Fiscal Studies, Institute for Fiscal Studies, vol. 1(4), pages 26-43, November.
    • Handle: RePEc:ifs:fistud:v:1:y:1980:i:4:p:26-43
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