Federal government consumption expenditures make up about 28% of total government expenditures.
Federal, state, and local governments contribute to the nation's economy by providing public services and investing in capital. It also provides households with benefits such as Social Security and Medicare. Government consumption expenditure includes government expenditures on the production and provision of public services such as defense and education.
Gross government investment consists of spending on tangible assets that directly benefit the public, such as building a highway or assisting a government agency in carrying out its mission. Consumer spending and gross investment are measures of government spending included in the calculation of Gross Domestic Product or GDP.
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