Government Current/Consumption Expenditure (G1)

This is a relatively stable component and is spending by the government on current goods and services that contribute to the day-to-day running of the public sector. The major item of G1 is the wages and salaries of public servants. An unusual item included in G1 is all defence expenditure regardless of whether it is current or capital in nature. This component accounts for approximately 20 per cent of aggregate demand.