Government Spending

Notes

Government Spending

The amount of money that a government plans to spend will depend on the attitude to government involvement in the economy and other factors such as the stage of the trade cycle.

The table below shows an example of government spending.

Country Government expenditure (% of GDP)
Finland 57 
France 57 
Sweden 50 
Italy 50 
Spain 44 
Germany 44 
United Kingdom 43 
Czech Republic 42
United States 39
(OECD, 2015)

A government spends money on:

  1. Pensions

  2. Health Care

  3. Education

  4. Debt interest
     

  5. Defence

    Military defence
    Civil defence

  6. Welfare

    Family and children
    Unemployment
    Housing
    Social protection

  7. Protection

    Police services
    Fire-protection services
    Law courts
    Prisons

Spending Pie Chart
Notes