Government Spending
Definition
Government spending refers to expenditures made by federal, state, or local governments on goods, services, infrastructure projects, social programs, defense, etc., using taxpayer funds.
Analogy
Picture your parents creating a budget for household expenses. Government spending is like them deciding how much money should go towards groceries, bills, education for you and your siblings - all while considering what's best for everyone in your family.
Related terms
Fiscal Policy: The use of government spending and taxation to influence the economy.
Budget Deficit: When government spending exceeds revenue, resulting in a shortfall that must be financed through borrowing.
Public Goods: Goods or services provided by the government for the benefit of all citizens, such as roads, parks, and national defense.
"Government Spending" appears in:
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