Government expenses

Question 1

Government current expenditure

Answer 1

Government Consumption spending (G1)

• Payments of wages and salaries for government employees
• Day to day operating expenses for departments such as defence, education and health.

Question 2

Government capital expenditure

Answer 2

Government investment spending (G2)
Spending on building, social and economic infrastructure
Spending on equipment

Question 3

Transfer Payments

Answer 3

Paid to individuals – mainly welfare benefits
Not considered G1 or G2 as it is the consumer (C) who spends the
money

Question 4

Top 3 government expenses in 2021-2022 budget

Answer 4

1. Social security / welfare ($210B)
2. Health ($98B)
3. Revenue assistance to states and territories ($75B)