Government Spending – The BEA’s NIPA Report
GovernmentsÂ spend money on defence, highways, schools, hospitals, interest payments, and many other categories and accounts for roughly 20% of the total GDP figure in the US. Spending can be further divided into federal, state and local levels of spending. Federal spending accounts for the largest of the three. We see that federal spending accounted for roughly half of the total government expenditure in the US. We will see one economic indicator that gives us an indication of government expenditure – The Construction spending release.
Figure: Composition of US Government Spending
Lastly we study the net effects of transactions of the United States with the rest of the world.