ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Federal government spending pays for everything from Social Security and Medicare to military equipment, highway maintenance, building construction, research, and education. This spending can be broken down into two primary categories: mandatory and discretionary.

Detailed explanation-2: -What is Government Spending? Government spending refers to money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, and defense.

Detailed explanation-3: -Government purchases range from spending on infrastructure projects and paying civil service and public service employees, to buying office software and equipment and maintaining public buildings. Transfer payments, which do not involve purchases, are not included in this category.

Detailed explanation-4: -#1 – Government Consumption It is also known as government final consumption expenditure (GFCE) or current expenditures.