Chapter 10: Forward funded system for public healthcare system

Many of the outgoings would not vary depending on population. When setting the expected outgo (or budget) for various things, the State often inflates the previous year's expenditure. So, much of its spending (like defence or education) might not be too dependent on numbers of people (at least in the short-term for a relatively stable population). Some would be (like State pension payments) and this could be allowed for in the model.

This is often raised as an issue with NHS spending in the UK - the population is increasing but the NHS budget is not increasing by the same extent (although spending per captia has increased from 2003/04, it has flattened since 2009 and for the UK as a whole it was less in 2013/14 than 2009).

Hope this helps!
Sarah

 

That sounds sensible