Government Spending
This means money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, defense, and social protections.
![Cover of US budget book](https://www.investopedia.com/thmb/qQu4GQ75aRJDZRzLRWhMfMiMVy4=/480x360/filters:no_upscale():max_bytes(150000):strip_icc()/the-federal-budget-process-56ccb4d43df78cfb37a2b49e.jpg)
How the Federal Budget Process Works
![](https://www.investopedia.com/thmb/_HaN_45y66u3tvtGkxJoC58nZwA=/285x260/filters:no_upscale():max_bytes(150000):strip_icc()/bonds-lrg-4-5bfc2b234cedfd0026c104ea.jpg)
How Do Open Market Operations Affect the U.S. Money Supply?
![Diagram showing current trend of increasing Tax Rates.](https://www.investopedia.com/thmb/RCCqkuKfx4iBLICtfDv2xsHPpxs=/1500x844/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-921163230-b5f0f9a4cd384fb2839855a57edea139.jpg)
Fiscal Policy: Balancing Between Tax Rates and Public Spending
![](https://www.investopedia.com/thmb/xOq7JYOmS3VteuUR6W1DtsrUPzY=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/investing10-5bfc2b90c9e77c00517fd2ef.jpg)
What Is a Bailout? Definition, How They Work, and Example
![](https://www.investopedia.com/thmb/Pa04VKy0HXWehjWDHRXFrCysdp0=/380x254/filters:no_upscale():max_bytes(150000):strip_icc()/dv740090-5bfc2b8b46e0fb00265bea71.jpg)
What Is the Crowding Out Effect Economic Theory?
![Transfer Payment: A payment of money, usually from the government, for which there are no goods or services exchanged.](https://www.investopedia.com/thmb/P8j_bo3oyMosmDHfoGIU5CCKdzc=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/transferpayment.asp-final-a9ac07eebc3844129517fcc92b68a95d.png)
Transfer Payment: Definition, Types of Transfers, and Examples
![Global Exchange](https://www.investopedia.com/thmb/Vb-chUSEv0Ty_Ol6ebAGtDO5C1o=/1920x960/filters:no_upscale():max_bytes(150000):strip_icc()/earth-74015_1920-cd599de5f15a44bfae3b626eb347a02c.jpg)
Current vs. Capital Accounts: What's the Difference?
![](https://www.investopedia.com/thmb/tapXn9wAxYZXg_93dw1Bj7fhgxY=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/investing12-5bfc2b8f46e0fb00517be087.jpg)
Economic Integration Definition and Real World Example
![Sovereign Wealth Fund (SWF): A state-owned investment fund used to benefit the country's economy and citizens.](https://www.investopedia.com/thmb/ZymLPkhEBHm1T8GrnYutA3ZEdrs=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/sovereign_wealth_fund.asp-final-f59aacb89e324c7a9133d36abb90d865.png)
Sovereign Wealth Fund (SWF): Definition, Examples, and Types
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A History of U.S. Government Financial Bailouts
![](https://www.investopedia.com/thmb/kHoxn4Xko1K_5VTiRe27Ae7j47A=/380x254/filters:no_upscale():max_bytes(150000):strip_icc()/rbv2_53-5bfc2b8ac9e77c0058770499.jpg)
How Does the Government Spend My Taxes?
![Public-Private Partnership](https://www.investopedia.com/thmb/HglKbugj5_VkVZhjdciWz2JHkJQ=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/public-private-partnerships-Final-36ea2b6d4c7b40379fa6fe4570606fe8.jpg)
Public-Private Partnerships (PPPs): Definition, How They Work, and Examples
![Hands of Financial Manager Taking Notes When Working](https://www.investopedia.com/thmb/a8JyzDMb0ksMJKQXz2KpnA-AWqc=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1004667450-60b01e710d854f46ad73ba4059a13e4d.jpg)
Balanced Budget: Definition, Example of Uses, and How to Balance
![](https://www.investopedia.com/thmb/voTDveJnZKWvrh2csOfBRI6dONY=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/investing8-5bfc2b8d46e0fb005144dbe3.jpg)
Fiscal Deficit: Definition and History in the U.S.
![Exterior of the US Federal Reserve Building in Washington DC](https://www.investopedia.com/thmb/S2-6hbxH4tWRKqPqatvqGfCt_yo=/3000x2044/filters:no_upscale():max_bytes(150000):strip_icc()/exterior-of-the-us-federal-reserve-building-in-washington-dc-170617884-354aa87425a04b2a9d7b567a30023376.jpg)
What Are Open Market Operations (OMOs), and How Do They Work?
![](https://www.investopedia.com/thmb/WD7DPrQHUkyc5ShhXpfd_-SA5vc=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/wall_street_179681980-5bfc2b9746e0fb0083c07d29.jpg)
What Are Examples of Pork Barrel Politics in the United States?
![Alaska State ferry, M/V Kennicott, at Auke Bay terminal, near Juneau, Alaska.](https://www.investopedia.com/thmb/1tgRVYRr4r57Oyb9ugnBk36Bmn0=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-129289546-cdab68a665e04bc99c8a38638ffd320d.jpg)
3 of the Biggest Land Deals in History
![Infrastructure](https://www.investopedia.com/thmb/sWiElffGQF5T6YuJiptHX5I-izM=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Investopedia_Infrastructure-3c22a20eac8c4f75928ba206be6c4c2f.jpg)
Infrastructure: Definition, Meaning, and Examples
![J Curve: A trendline that shows an initial loss immediately followed by a dramatic gain.](https://www.investopedia.com/thmb/Z-0vObIK-e8gZ916yeuY5ZdF0aA=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/j-curve-effect.asp-final-dc004ed0fab547289c620ed77669b2d7.png)
J Curve: Definition and Uses in Economics and Private Equity
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What Is a Budget Surplus? What's the Impact, and Pros & Cons?
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What Is Earmarking? How It Works and Examples
![Businesswomen talking together in office corridor](https://www.investopedia.com/thmb/FrfSbimNEjiSrT-NCtJ2bA3Pri0=/5173x3442/filters:no_upscale():max_bytes(150000):strip_icc()/businesswomen-talking-together-in-office-corridor-113190226-713e9cd3a26d4614857111d0ec348db2.jpg)
Business to Government (B2G): Selling to The Government
![Hands Holding Wallet With Us Dollars](https://www.investopedia.com/thmb/y_dPPaASXGjbR899t7QDvsXcRFs=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-163236818-aed0a489295a48dfb717e82ecb06f1d2.jpg)
Keynesian Multiplier: What It Is and How It's Used
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Cost Accounting Standards Board (CASB): What it is, How it Works
![](https://www.investopedia.com/thmb/f6is0XwMQwdQpN-liQdMNZultuM=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/investing9-5bfc2b8d46e0fb0051bddfee.jpg)
Fed Balance Sheet: The Federal Reserve's Assets and Liabilities
![Ricardian Equivalence: An economic theory that says that financing government spending out of current taxes or future taxes (and current deficits) will have equivalent effects on the overall economy.](https://www.investopedia.com/thmb/ZJzFKF3ifqCIStawHTK6HJhzyj8=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/ricardian-equivalence.asp-Final-f6900e54c8044d8b91a7bbaf24199ff3.jpg)
Ricardian Equivalence: Definition, History, and Validity Theories
![](https://www.investopedia.com/thmb/UF94sk54HYB0OuaK3o2J6ymbWUQ=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/activetrading14-5bfc2b9bc9e77c00263066bb.jpg)
Deficit Spending: Definition, Theory, Arguments Pro & Con
![A politician counting money in front of the US Capitol Building.](https://www.investopedia.com/thmb/a1Crq2YV6EAu5zzHb9Xd15ILgT0=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-108914580-6c39b9e7866b4cf7817be961b2203974.jpg)
Pork Barrel Politics: Definition, Purposes, Reform Efforts
![Municipal Assistance Corporation (MAC)](https://www.investopedia.com/thmb/KL1k5j33K11y0P9LG9CzsW9_wWo=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/mac.asp-final-45822afc5e5c441c8d2f776831cf8060.png)
Municipal Assistance Corporation (MAC)
![Montreal, Olympic Park, the Olympic rings and the stadium dating from the Summer Olympics 1976](https://www.investopedia.com/thmb/UYrDMR-_G9IPgGVMhrVTReSM_9I=/2120x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-668774329-58e15e6e3df78c5162a93cee.jpg)
The Best and Worst Olympics Financial Planning
![The Federal Reserve building in Washington, D.C.](https://www.investopedia.com/thmb/QCLizhQAm7wsH4vAI-vv8yyH7EA=/3000x2000/filters:no_upscale():max_bytes(150000):strip_icc()/fedres-572f19773df78c038e132299.jpg)
How Interest Rate Cuts Affect Consumers
![](https://www.investopedia.com/thmb/pjhV6WOZNMxd5ToBSUiWMLDj6rU=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/147323400-5bfc2b8c4cedfd0026c11901.jpg)
TARP Bonuses: Meaning, How They Work, Criticisms
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Federal Budget: What it is, How it Works, History
![U.S. Treasury Budget](https://www.investopedia.com/thmb/ctCBHxA1ypQkmT4OpfFKHxbqFcA=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/treasury-budget.asp-final-de3689a018e9412fbc894dd8ee5a54b1.png)
U.S. Treasury Budget
![Mechanic sitting at his desk in workshop](https://www.investopedia.com/thmb/_d-PCWlWj_tzuEDqBAa3IlzKbe4=/2122x1412/filters:no_upscale():max_bytes(150000):strip_icc()/Johnthemechanic-c66a12332e044078a7c20179b9325b67.jpg)
Fiscal Drag: Meaning in Goverment Spending
![A politician counting money in front of the US Capitol Building.](https://www.investopedia.com/thmb/mjxb51WjdqkPwam_II5XPdic1tk=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-108914580-4fffdd8bd5a14bdc88cb810f1368185d.jpg)
Government Purchases: Definition, Examples, Role in GDP
![Low angle view of skyscrapers](https://www.investopedia.com/thmb/vFwBnwoBhyILO7FZDPijy6wJDqw=/2120x1414/filters:no_upscale():max_bytes(150000):strip_icc()/low-angle-view-of-skyscrapers-in-tokyo-downtown-682328418-d70e2e1723e94c908a67193b3d93a96b.jpg)
Deflationary Spiral: Overview and Examples in Government Spending
![](https://www.investopedia.com/thmb/osd0hnqJCUMsLJ6fYo1a1-ZxorY=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/shutterstock_67023106-5bfc2b9846e0fb005144dd87.jpg)
How Are Earmarks and Pork Barrel Spending Related?
![The International Finance Corporation headquarters, 2121 Pennsylvania Avenue, NW in the Foggy Bottom neighborhood of Washington, D.C.](https://www.investopedia.com/thmb/EhWo8Z_1UEH3SfLeBfxX3y3CJho=/1280x1014/filters:no_upscale():max_bytes(150000):strip_icc()/International_Finance_Corporation_Building-162542cde91447138aded5227c8e2217.jpg)
International Finance Corporation (IFC): Definition and Example
![People queue outside of a branch of the Bank Of Baroda in Kevadiya Colony, on the outskirts of Rajpipla in India's western Gujarat state.](https://www.investopedia.com/thmb/gq6KMm3v4F8IKX9vNjMtnLAg5KM=/3500x2442/filters:no_upscale():max_bytes(150000):strip_icc()/BankOfBaroda-b19c9ed806964706bf20a30c1ea06685.jpg)
Financial Repression Definition, Features, Consequences
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Special Revenue Fund: What it is, How it Works
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National Savings Rate: Overview, Calculations, Factors Affecting
![](https://www.investopedia.com/thmb/UaAlLr7ZsTdzHHq11QKh5X9iqL0=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/shutterstock_253136563-5bfc2b98c9e77c00519aa7a8.jpg)
Where Did the Phrase Pork Barrel Come From?
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The Golden Rule of Government Spending: Definition, Applications, US Approach
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Equalization Payments: Meaning, In Different Countries, Morality
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How Tax Cuts Affect the Economy
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Conduit Issuer: Meaning, Investing, Risks
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Just Compensation: Overview, Factors, Methods
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Block Grant: Meaning, History, and Examples
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Holocaust Restitution Payments: What it Means, How it Works
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What Is an Electronic Benefits Transfer (EBT)? Definition and Use
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What Is Universal Basic Income (UBI), and How Does It Work?
![Auditor looking at paperwork](https://www.investopedia.com/thmb/k8FikSCrp9ceZ4Vla-tsFArAkvo=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/Auditor-68fe31ddcfe343b5ae7ad7067eb159f1.jpg)
Performance Audit: Definition, Standards, and Benefits
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State General Reserve Fund (SGRF): What It Is, How It Works
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How the Minimum Wage Impacts Unemployment
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What Are the Pros and Cons of a Federal Balanced Budget?
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Agricultural Subsidies: Meaning, Scope, Reasons
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How Does Pork Barrel Spending Hurt the Economy?
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How Government Land Seizures Work for Landowners
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Why Curiosity Cost $2.5 Billion
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6 Outrageous Political Earmarks