Government spending.
Definition
The money that federal, state, and local governments spend on public goods, services, and programs. The largest categories of federal spending include Social Security, Medicare and Medicaid, and national defense, funded primarily through tax revenue and borrowing.
Examples
Real-world.
- 1 Federal spending on Social Security payments to retired Americans
- 2 State governments funding public schools and universities
- 3 Local governments paying for police, fire departments, and road maintenance