Professional Documents
Culture Documents
Government Spending refers to public expenditure on goods and services and is a major component of the GDP. Government spending policies like setting up
budget targets, adjusting taxation, increasing public expenditure and public works are very effective tools in influencing economic growth
Government Spending in the United States averaged 2082.18 USD Billion from 1950 until 2020, reaching an all time high of 3368.73 USD
Billion in the second quarter of 2020 and a record low of 599.63 USD Billion in the first quarter of 1950.
This government total excludes spending by "government enterprises" which sell goods and services "to households and businesses in a market transaction."
These "government enterprises" include the U.S. Postal Service, Federal Housing Administration, flood insurance, housing authorities, transit systems, airports,
water ports, and utilities. However "their investment, interest payments, and operating surplus (or deficit) are recorded as government transactions.
BEA also shows $3.8 trillion government consumption expenditures and gross investment, which excludes transfer payments (like social security), subsidies and
interest. BEA describes its different totals.
OECD for 2015 shows general government spending at 37.9% of GDP, or $21,536 per capita. BEA's 34% is smaller because it just includes government
spending. OECD's total is larger because it also includes fees, e.g. tuition payments at public colleges.