Government spending refers to the money that a government uses to fund various public services and projects. This includes expenditures on infrastructure, education, healthcare, and defense. By allocating funds to these areas, governments aim to improve the quality of life for their citizens and stimulate economic growth. The sources of government spending typically come from tax revenues, borrowing, and grants. Effective management of these funds is crucial, as it impacts the overall economy and public welfare. Governments must balance their budgets to ensure they do not overspend, which can lead to increased debt and financial instability.