Many claims that government expenditures is based more on politics than on economic. Explain your opinion
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Answer:
So government spending or government expenditure is often divided into three main types:
Current Expenditures or Government final consumption expenditure on goods and services for current use to directly satisfy individual or collective needs of the members of the community.Capital Expenditure or Gross
Capital Expenditures or fixed capital formation (or government investment) - government spending on goods and services intended to create future benefits, such as infrastructure investment in transport (roads, rail airports), health (water collection and distribution, sewage systems, communication (telephone, radio and tv) and research spending (defence, space, genetics) .
Transfer payments - spending that does not involve transactions of goods and services, but instead represent transfers of money, such as social security payments, pensions and unemployment benefit.
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