Government spending refers to the money that a government uses to fund its various activities and services. This includes expenditures on public services such as education, healthcare, infrastructure, and defense. The funds for this spending typically come from taxes collected from individuals and businesses, as well as from borrowing. Effective government spending aims to promote economic growth and improve the quality of life for citizens. It can also influence the overall economy by stimulating demand for goods and services. However, excessive spending can lead to budget deficits and increased national debt, which may have long-term consequences for a country's financial health.