Government spending is primarily used to provide essential public services such as education, healthcare, infrastructure, and national defense.

Investment spending, such as infrastructure projects and research and development, is intended to increase the productive capacity of the economy and promote long-term economic growth.

A budget deficit occurs when government spending exceeds government revenue, resulting in a negative fiscal balance.

Government borrowing to finance budget deficits is a major cause of public debt, as it leads to an accumulation of debt over time.

High levels of public debt can increase the risk of default, which occurs when a government is unable to repay its debts.

Fiscal policy is a tool used by governments to manage their finances and influence the economy through taxation and government spending.

Expansionary fiscal policy involves increasing government spending or reducing taxes to stimulate economic growth.

Contractionary fiscal policy involves reducing government spending or increasing taxes to reduce inflation.

High levels of public debt can lead to higher interest rates, as investors demand a higher return for lending money to a government with a high debt burden.

Public debt is the total amount of money that a government owes to its creditors, including domestic and foreign lenders.

Government spending can provide essential public services such as education, healthcare, and infrastructure, which can improve the well-being of citizens and contribute to economic growth.

A budget surplus occurs when government revenue exceeds government spending, resulting in a positive fiscal balance.

High levels of public debt can lead to reduced investment, as governments may need to borrow money to finance their debt obligations, leaving less money available for investment in infrastructure and other productive projects.

A budget is the government's plan for managing its finances over a specific period of time, including its spending, revenue, and borrowing.

Government borrowing can be used to finance investment in infrastructure and other productive projects, which can contribute to economic growth.