government spending and budget deficits

Government spending refers to the financial outlays made by the government for various purposes such as public goods, services, welfare programs, and infrastructure projects. It includes expenses on defense, education, healthcare, social security, and more. Budget deficits occur when the government's expenditures surpass its revenue or income sources, resulting in a shortfall. This shortfall is typically covered by borrowing money, which leads to an increase in national debt. Budget deficits can be caused by excessive spending, low tax revenues, economic downturns, or policies aimed at stimulating growth.

Explore

Requires login.