Government spending or government expenditure is classified by economists into three main types.

 

  • Government purchases of goods and services for current use are classed as government consumption.
  • Government purchases of goods and services intended to create future benefits, such as infrastructure investment or research spending, are classed as government investment.
  • Government expenditures that are not purchases of goods and services, and instead just represent transfers of money, such as social security payments, are called transfer payments.
government expenditure by function

WHO'S ONLINE

We have 346 guests and no members online

JOIN OUR ONLINE COURSES

paypal verified logo