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What sectors of government spends money?

In the past, the functions of the government were few and limited only to protection of the country and maintenance of law and order in the country. However, modern states are welfare states, and they work to promote public welfare. The sectors of government expenditures are as follows:

Expenditure USA


1. Defence and security: Protection of the country from external aggression and maintenance of law and order in the country is the primary function of the government released the government has to spend an armament, security forces and others departments of Defence.

2. Administration: The government has to incur expenditure on administrative units. It has to make payments of salaries in allowance to elected representatives and employees employed in various government Ministries and departments.

3. Economic sector: The government incurs developmental expenditure on economic sectors like agriculture, industry, trade, tourism, irrigation, hydropower, transport, and communication, etc. to increase the rate of economic growth.

4. Social services: The government has to provide social services and facilities to the people. It has to locate its expenditures on education, drinking water, health services, electricity, and so on.

5. Basic infrastructures: Infrastructural development is the basis of economic development. The government has to construct and develop roads, bridges, hydro projects, etc. to increase capital information and develop the economy.

6. Social security: The government has to provide old-age pension, unemployment allowance, pension and gratuity to retired employees, etc.

7. Debt management: Developing countries have to run internal and external debt to finance development projects. As a result, the government has to make huge amounts of money towards interest payments.
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