Government Spending

Question 1

Why do governments spend money on public services?

Answer 1

To provide essential services like healthcare, education, transport, and security that benefit society.

Question 2

How does taxation affect public spending?

Answer 2

Higher taxes provide more funds for public services, while lower taxes may reduce government spending.

Question 3

What are the constraints on public spending?

Answer 3

❌ Budget deficits – Governments may not have enough funds.

❌ Economic conditions – Recessions reduce tax revenue.

❌ Political priorities – Different governments focus on different areas.