Government Expenditures
Economists classify government expenditures into three main types. Government purchases of goods and services for current use are classed as government consumption. Government purchases of goods and services intended to create future benefits--- such as infrastructure investment or research spending--- are classed as government investment. Government expenditures that are not purchases of goods and services, and instead just represent transfers of money--- such as social security payments--- are called transfer payments.
Read more about this topic: Public Finance
Famous quotes containing the word government:
“Vanity is as advantageous to a government as pride is dangerous. To be convinced of this we need only represent, on the one hand, the numberless benefits which result from vanity, as industry, the arts, fashions, politeness, and taste; and on the other, the infinite evils which spring from the pride of certain nations, a laziness, poverty, a total neglect of everything.”
—Charles Louis de Secondat Montesquieu (1689–1755)