Impact Of Government Spending On Economic Growth – Government Expenditure: The Impact of Government Expenditure on the Fiscal Deficit 1. Understanding the Concept of Government Expenditure and the Fiscal Deficit
Government spending plays a key role in shaping a country’s economy. It includes the various expenditures made by the government, including investments in infrastructure, defense, education, health care, and social welfare programs. While government spending is essential to a nation’s overall development and prosperity, it also affects the fiscal deficit, which refers to the amount by which government spending exceeds its revenue.
Impact Of Government Spending On Economic Growth
1. Government spending as a tool for economic growth: Government spending can stimulate economic growth by providing a boost to aggregate demand. When the government invests in infrastructure projects, such as building roads, bridges and airports, it creates employment opportunities and increases consumer spending. This, in turn, leads to increased production … Read the rest