Government Spending

Furthermore, a large portion of the federal government’s budget is reserved for spending that seeks to improve the general welfare of citizens, such as money spent on fighting drug addiction and solving urban problems.

Public expenditure - Spending made by the government of a country on collective needs and wants such as pension, provision, infrastructure, etc.

The three biggest sources of government spending are Health, Social Security, and Defense (The Concord Coalition 2015).

Federal spending is a controversial topic due especially to the growing budget deficit. Millions of American citizens pay taxes each year helping to fund the Federal Budget. Although American citizens’ tax dollars are spent by the Federal Budget, how the resources are divided and spent are not always a proper reflection of how society wants the resources to be allocated. In 2013, Washington spent nearly $3.5 trillion, while only collecting $2.8 in revenue, adding billions to the budget deficit. Where do these tax dollars go? Approximately, 23% was spent on health care such as Medicare, 22% on Social Security, 19% on national defense, 19% on

The government solely protects the rights of the employees and consumers and offer of public goods. Government spending and expenditure are one way by which the government control market economies, with increased spending to increase cash flow in the economy, and increased expenditures to minimize cash flow in the economy. Such increases

The reason we spend more money that goes back to the economy is because of the supply and demand system companies take notice of how much the consumers buy of their product so they produce more in order to keep a constant flow of money going to the economy.

The government helps fund several organizations that the country and helps it thrive. For example, the FDA, or the Food and Drug Administration, helps protect the citizens from harmful foods or drugs that could lead to illness or even death (American). They create new medicine to help the sick which can save lives. Without government funding, this organization would

The other alternative often discussed is to decrease entitlement spending and other government program. Entitlement spending is money used to fund programs like Social Security, Medicare and Medicaid. In addition, the largest portion of the federal government’s budget is spent on defence spending. The problem is that spending on these programs is growing at a greater rate than the Malaysia economy. This means that the income generated from tax deposits cannot keep pace with the spending on these programs.

Government purchase is the government sector tracks what the government actually spends money on. Government purchases of goods and

Thirdly, government can get money by issuing bonds to improve the life of its people. In the U.S., federal, state and local governments issue bonds to build, repair and improve schools, streets, hospitals, airports and many other public works.

Since understanding a government’s ability to spend is important for an economy, it is critical to

Nigeria Public spending have been geared towards the provision of infrastructures and social services such as schools, hospitals, electricity, water supply etc, while economic activities such as deliberately establishing manufacturing and processing industries

Answering the above questions, firstly we must establish that a government has to offer the best environment possible for the welfare of its citizens. For the foregoing reasons, the government has to implement policies that have the greatest coverage, i.e. serve the greatest number of people and be destined to improve the condition of life. Here is where a government starts to spend. The government has to ensure cover all the costs in order to maintain the rule of law, then offer the services that citizens believe are rights to all, and finally, empower its people to improve their standard of living.

Allows government to have money to do road works, school construction and all other governmental works.

Governments can use a budget surplus to do two things: to slow the pace of strong economic growth and to stabilize prices when inflation is too high. Keynesian theory posits that removing spending from the economy will reduce levels of aggregate demand and contract the economy, thus stabilizing prices.