Government spending is primarily used to provide essential public services such as education, healthcare, infrastructure, and social welfare programs.

Taxation is not a type of government spending, but rather a means of raising revenue for the government.

Budget deficit occurs when government spending exceeds tax revenue.

Availability of natural resources is not a direct factor that influences government spending.

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

Reduced unemployment is not a potential consequence of excessive government spending.

Contractionary fiscal policy involves decreasing government spending or raising taxes to reduce the national debt.

Increased unemployment is not a potential benefit of government spending.

Budgeting is the process of allocating government spending among different sectors of the economy.

Corporate tax credits are not a type of government transfer payment.

Neutral fiscal policy involves maintaining a balance between government spending and tax revenue, with the aim of keeping the economy stable.

Reduced public debt is not a potential consequence of insufficient government spending.

Government expenditure is the total amount of money that the government spends in a given year.

Increased national debt is not a potential benefit of government investment.

Performance evaluation is the process of evaluating the effectiveness of government spending.