Government expenditure refers to the total amount of money that a government spends on various services and projects. This includes spending on public services such as education, healthcare, and infrastructure, as well as defense and social welfare programs. The funds for these expenditures typically come from taxes collected from individuals and businesses.
Government expenditure plays a crucial role in the economy by influencing overall demand and providing essential services to citizens. It can also impact economic growth, employment rates, and the quality of life. Effective management of government expenditure is important for maintaining a balanced budget and ensuring sustainable development.