Government Spending

Definition

Government spending refers to money spent by the public sector on various services, such as education, healthcare, defense, infrastructure, and social welfare programs.

Related terms

Fiscal Policy: This is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.

Budget Deficit: This occurs when expenses exceed revenue and indicate the financial health of a country. The government generally uses this term in reference to its spending rather than businesses or individuals.

Public Debt: Also known as national debt or sovereign debt, it is the total amount of money that a country's government has borrowed by various means.