Government spending

public spendingpublic fundspublic investmentspendingGovernment operationspublic moneypublic fundingpublicly fundedexpendituregovernment expenditure
Government spending or expenditure includes all government consumption, investment, and transfer payments.wikipedia
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Fiscal policy

fiscalfiscal policiesfiscal management
Changes in government spending is a major component of fiscal policy used to stabilize the macroeconomic business cycle.
In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure (spending) to influence a country's economy.

Gross domestic product

GDPnominal GDPGDP (nominal)
These two types of government spending, on final consumption and on gross capital formation, together constitute one of the major components of gross domestic product.

Crowding out (economics)

crowding outcrowd outcrowding-out effect
In economics, the potential "shifting" in resources from the private sector to the public sector as a result of an increase in government deficit spending is called crowding out.
If an increase in government spending and/or a decrease in tax revenues leads to a deficit that is financed by increased borrowing, then the borrowing can increase interest rates, leading to a reduction in private investment.

Recession

economic recessioneconomic downturndepression
Expansionary fiscal policy can be used by governments to stimulate the economy during a recession.
Monetarists would favor the use of expansionary monetary policy, while Keynesian economists may advocate increased government spending to spark economic growth.

Government debt

national debtpublic debtsovereign debt
Government spending can be financed by government borrowing, or taxes.
In the dominant economic policy generally ascribed to theories of John Maynard Keynes, sometimes called Keynesian economics, there is tolerance for fairly high levels of public debt to pay for public investment in lean times, which, if boom times follow, can then be paid back from rising tax revenues.

Output (economics)

outputeconomic outputoutputs
For example, an increase in government spending directly increases demand for goods and services, which can help increase output and employment.
Output can be sub-divided into components based on whose demand has generated it – total consumption C by members of the public (including on imported goods) minus imported goods M (the difference being consumption of domestic output), spending G by the government, domestically produced goods X bought by foreigners, planned inventory accumulation I planned inven, unplanned inventory accumulation I unplanned inven resulting from mis-predictions of consumer and government demand, and fixed investment I f on machinery and the like.

Welfare

social welfarepublic assistancesocial assistance
Examples of certain transfer payments include welfare (financial aid), social security, and government giving subsidies to certain businesses (firms).
During the Great Depression, when emergency relief measures were introduced under President Franklin D. Roosevelt, Roosevelt's New Deal focused predominantly on a program of providing work and stimulating the economy through public spending on projects, rather than on cash payment.

Social security

social security systemsocial insurancestate benefits
Examples of certain transfer payments include welfare (financial aid), social security, and government giving subsidies to certain businesses (firms). Government expenditures that are not acquisition of goods and services, and which represent transfers of money such as social security payments, are called transfer payments.
Even then, Roosevelt's New Deal focused predominantly on a program of providing work and stimulating the economy through public spending on projects, rather than on cash payment.

Government final consumption expenditure

Government consumption
In national income accounting the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure.

Ecuador

ECURepublic of EcuadorEcuadorian
After being elected in 2017, President Lenin Moreno's government adopted economically liberal policies: reduction of public spending, trade liberalization, flexibility of the labour code, etc. He also left the left-wing Bolivarian Alliance for the Americas in August 2018.

Infrastructure

infrastructuralinfrastructuresurban infrastructure
Infrastructure spending is considered government investment because it will usually save money in the long run, and thereby reduce the net present value of government liabilities.
Some sectors are dominated by government spending, others by overseas development aid (ODA), and yet others by private investors.

Macroeconomics

macroeconomicmacroeconomistmacroeconomic policy
In economic theory or in macroeconomics, investment is the amount purchased per unit of time of goods which are not consumed but are to be used for future production (i.e. capital).
Examples of such tools are expenditure, taxes, debt.

Taxpayer groups

taxpayers advocacy organizationtaxpayers unionanti-tax advocacy group
Taxpayer groups, also known as taxpayers unions, are formal nonprofit or informal advocacy groups that promote lower taxation, reductions in government spending, and limits to government debt.

Mandatory spending

mandatory/entitlement spending
Also known as entitlement spending, in US fiscal policy, mandatory spending is government spending on certain programs that are mandated by law.

Rahn curve

The Rahn curve is a graph used to illustrate an economic theory, proposed in 1996 by American economist Richard W. Rahn, which indicates that there is a level of government spending that maximises economic growth.

Switzerland

SwissSwiss ConfederationSWI
The Swiss Federal budget had a size of 62.8 billion Swiss francs in 2010, which is an equivalent 11.35% of the country's GDP in that year; however, the regional (canton) budgets and the budgets of the municipalities are not counted as part of the federal budget and the total rate of government spending is closer to 33.8% of GDP.

Tax

taxationtaxeslevy
Government spending can be financed by government borrowing, or taxes.
The purpose of taxation is to provide for government spending without inflation.

Government budget

budgetstate budgetnational budget
Government expenses include spending on current goods and services, which economists call [[National Income and Product Accounts#Accounting for national product: the right side of the report|government consumption]]; [[National Income and Product Accounts#Accounting for national product: the right side of the report|government investment expenditures]] such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits.

Measures of national income and output

national incomeGNPgross national product
In national income accounting the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure.

Investment

Investmentsinvestingcapital investment
Infrastructure spending is considered government investment because it will usually save money in the long run, and thereby reduce the net present value of government liabilities. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government gross capital formation).

Gross fixed capital formation

government spendinggross capital formation
Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government gross capital formation).

Business cycle

economic boomboomboom and bust
Changes in government spending is a major component of fiscal policy used to stabilize the macroeconomic business cycle.

Demand

consumer demandmarket demanddemand side
For example, an increase in government spending directly increases demand for goods and services, which can help increase output and employment.

Employment

employeeemployeremployees
For example, an increase in government spending directly increases demand for goods and services, which can help increase output and employment.

Inflation

inflation rateprice inflationfood inflation
A decrease in government spending can help keep inflation in check.