Effect of government spending.

TOZZIBLINKZ

VIP Contributor
Just like individuals in one occasion or another we have to spend money in order to acquire assets and properties in which they desire the government on the other hand also will have to spend in order to acquire assets I'm sponsored various capital projects which are needed by the people in order to ensure economic development and growth . Government spending by definition refers to the total expenses which is incurred by the government or public authorities at all levels of administration whether in the local , state , and federal sector , in a particular country . It furthers include recurrent expenses and capital expenses . Below are some of the impacts that government spending has on the economy :

WEALTH DISTRIBUTION : government expenditure such as free education , free medical care , free or low-cost housing one way or the other benefits the poor and the masses . And as a result of this expenditure in existence wealth is equitably distributed among individuals but the rich and the poor .

EMPLOYMENT OPPORTUNITIES : mostly government spend it revenue and on sponsoring capital projects and some of the capital project include industries refineries etc . After this capital project are being set up it serve as a means of employment to various individuals living in the environment , the establishment of this capital project goes a long way in generating employment opportunities for the people .
 
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