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.

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.