Government spending refers to the amount of money that a government allocates for various purposes, such as public services, infrastructure projects, and social programs. It is the total amount of expenditure incurred by the government on different activities including consumption of goods and services, transfer payments, and investment in physical and human capital. Government spending can be financed through taxes, borrowing or printing money. The level of government spending has a significant impact on economic growth, inflation rates, and public debt levels.