Government spending
Below are a number of aspects of government spending in countries, which may vary from one country to another:
health care
Government spending on healthcare is one of the most important aspects of government spending in countries, as it includes spending on health programs and various insurance programs provided by countries to care for their citizens, and spending on developing the infrastructure of this important sector, such as building hospitals and health centers in various regions of the country, and providing appropriate treatments and medicines for them.[١]
National Defense
Many countries spend huge amounts of money on national defense programs, as national defense programs occupy important positions on the list of countries’ priorities, due to the extreme importance of this sector in maintaining the security of the state and its citizens. Among the aspects of spending on national defense are the salaries of workers in the army and various security agencies, as well as spending on armament and the possession of new weapons.[١]
education
Spending on education, including primary, secondary and higher education, is considered one of the most important aspects of government spending in countries. Countries allocate high percentages of their budgets to the education sector and its development by establishing new schools and universities and providing advanced curricula for their students, while creating all appropriate conditions to advance the educational process.[١]
Miscellaneous expenses
There are many forms of spending that different governments undertake to provide the best services to their citizens, including:[٢]
- Purchasing many services and goods that are not provided by public state institutions for the benefit of their citizens
- Projects Infrastructure such as roads Bridges, dams, water and sewer networks, and communications networks.
- Economic improvement programs that aim to improve the national economy by supporting some economic sectors and their workers.
- Income redistribution and social welfare enhancement programmes
- Employee salaries and community protection programs such as social security.[٣]
- Social welfare programs such as child care programs, special needs programs, unemployment programs, and other social programs.[٣]
- Training and employment programs.[٣]
- Social housing programmes: A number of countries are working to allocate state-subsidised housing for low-income people.[٣]
Government spending concept
Government spending is considered one of the main inputs in the process of calculating the general budget of countries. When the revenues of countries are higher than government spending, the budget achieves a surplus. When revenues are equal to expenditures, the budget is balanced, while in the event of government spending increasing and exceeding revenues, the budget achieves a deficit.[٤]
Recent studies on government spending indicate a large variation in government spending rates between countries, with government spending in high-income countries being much higher than in low-income countries. low income Spending in these countries is focused on community protection programmes, education, health care and other spending.[٥]
Measuring government spending over time by the amount of currency spent is inaccurate as this method does not take into account the amount of inflation and population and economic growth of countries. Therefore, government spending is measured as a percentage of the GDP of countries over time.[٤]
Types of government spending
Government spending is financed mainly through direct or indirect taxes and through borrowing that countries may resort to from their citizens or from external parties. The types of government spending are summarized as follows:[٢]
- Current spending
It is short-term expenditure that includes expenditure on wages and raw materials.
- Capital expenditure
It is a long-term expenditure that does not need to be renewed every Year and includes spending on physical assets such as infrastructure such as roads. Bridges, hospitals, schools. They are usually called Capital Social.
the reviewer
- ^ A for T “Where do governments spend money?”, market, Retrieved 20/1/2022. Edited.
- ^ A for “Government Spending”, corporatefinanceinstitute, Retrieved 20/1/2022. Edited.
- ^ A for T Th “Government Spending”, tutor2u, Retrieved 20/1/2022. Edited.
- ^ A for “30.1 Government Spending”, opentextbc, Retrieved 20/1/2022. Edited.
- ↑ “Government Spending”, ourworldindata, Retrieved 20/1/2022. Edited.