Government & Economy vocabulary for IELTS
Public spending, taxation, law and economic policy. 20 words with definitions and example sentences, useful for Writing Task 2 and Speaking Part 3.
- public spending noun
- money spent by government
- Public spending on infrastructure creates jobs.
- taxpayer noun
- a person who pays tax
- Taxpayers should not fund private businesses.
- subsidise verb
- to pay part of the cost of something
- The government subsidises public transport fares.
- regulation noun
- an official rule controlling an activity
- Stricter regulation of banks followed the crisis.
- legislation noun
- laws considered collectively
- New legislation bans smoking in public parks.
- incentive noun
- something that encourages action
- Tax incentives encourage people to buy electric cars.
- infrastructure noun
- basic systems such as roads, power and water
- Poor infrastructure limits economic growth.
- welfare noun
- state help for people in need
- Welfare payments protect families from poverty.
- economic growth noun
- an increase in a country's output
- Economic growth slowed to 1% last year.
- recession noun
- a period of falling economic activity
- Unemployment rises sharply during a recession.
- inflation noun
- a general increase in prices
- High inflation reduces the value of savings.
- budget deficit noun
- when government spending exceeds income
- The budget deficit forced cuts to public services.
- allocate verb
- to distribute resources for a purpose
- More funds should be allocated to mental health.
- accountability noun
- responsibility for actions and decisions
- A free press ensures government accountability.
- bureaucracy noun
- complex official procedures
- Excessive bureaucracy slows down small businesses.
- deterrent noun
- something that discourages an action
- Heavy fines act as a deterrent to littering.
- enforce verb
- to make sure a law is obeyed
- Speed limits are difficult to enforce on rural roads.
- privatisation noun
- transfer of a business from state to private ownership
- Rail privatisation led to higher fares.
- foreign aid noun
- help given by one country to another
- Foreign aid should target education and health.
- cost of living noun
- the money needed for basic expenses
- The cost of living has outpaced wages.