Major Types Of Government Expenditure, Methods In Microeconomic And Macroeconomic Issues Springerlink

They refer to the expenditure incurred by the central government.

Government job vacancy 2020 12th pass. The usual distinction is between consumption expenditure and investment expenditure. Borrowing money from foreigners. Interest paid on borrowed funds is another type of government expenditure.

The discretionary spending is what the government decides to spend on their intelligence agencies armed forces and other such departments. These government expenditures are either directed towards purchase of a part of the gross domestic product that an economy produces which is known as government purchases or towards members of other sectors of the economy as gifts which is known as transfer payments. So government spending or government expenditure is often divided into three main types.

Non plan expenditure the more significant component of revenue expenditure covers a broad degree of general economic and social services of the government. These two types of government spending on final consumption and on gross capital formation together constitute one of the major components of gross domestic product. Borrowing money from its own citizens.

The main objects of non plan expenditure are interest payments defence services subsidies salaries and pensions. The purchase of goods and services comprises one major type of government spending. There are two types of government spending the first one being discretionary and the second of the two types of government spending being mandatory.

Government expenditures must be discussed openly during meetings before being approved. Capital expenditures or fixed capital. Sources of government spending.

There are usually two types of government expenditures. There are several different types of government expenditure including the purchase and provision of goods and services investments and money transfers. At times government units finance some of their activities through borrowing and the interest on those borrowed funds is an expense that the government unit must meet.

Another distinction is between revenue expenditure and capital expenditure. Government spending is financed primarily through two sources. Government spending can be financed by government borrowing or taxes.

There are different types of such expenditure. Government consumption also includes the payment of salaries and benefits for federal employees. Capital expenditure or gross.

These guys help run the country in a particular way. This category covers the purchase of equipment ranging from government office computers to jet fighters and aircraft carriers.