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. Governments collect revenue primarily through taxes, which they then allocate to different sectors to support the economy and improve citizens' quality of life. The level of government spending can influence economic growth and stability. When spending increases, it can stimulate demand and create jobs, but excessive spending may lead to higher debt levels. Conversely, reducing spending can help control inflation but may also slow down economic growth if essential services are cut.