Government Spending

Government spending refers to the total expenditure by a government on goods, services, and obligations. It encompasses a wide range of activities, including but not limited to, investments in infrastructure, public safety, education, healthcare, and social services. Government spending can be categorized into two main types: discretionary spending, which is determined through the annual budget process and includes areas like defense and education; and mandatory spending, which is required by law and covers programs like Social Security and Medicare. Government spending is a key component of fiscal policy and can influence economic performance by stimulating or contracting economic activity, impacting employment levels, and addressing social needs.