yasin Essays - National Accounts, Economic Indicators,

A government has economic,social and financial duties which are determined by constitution. Government needs to have income from various resources (taxes, borrowings, social security instutions, properties,etc.) to be carried out these duties. Using of the income for government needs is called government expenditures. In this essay, I want to explain the using aims of government expenditures. These expenditures can be classified into three types: consumption, financial aid and government investment. The first type is using of government expenditures for consumption. These consumptions are wages, salaries, payments, office tools, renting the building, etc. Consumption expenditures have a big role on countries? budgets. They affect countries? economy directly. For instance, government buys goods and services in return for the consumption expenditures which government did. Consequently, new income movements form and national income increases. The second type; financial aids are expenditures done complimentary. These expenditures are interest of government debts, social payments and payments given to pensioners, war veterans and soldiers. In return for these expenditures, the government does not buy goods and services.Therefore, new income movements does not form. On the contrary to consumption expenditures, financial aids has not a direct impact on national income. However, they cause a change between rich and poor people in purchasing power. The last type; government investments provide capital to economy and create production capacity. They cause an increase in national income. These are roads, bridges, machines, factories,etc. Government investments are very essential to prevent an economic crisis and uneyployment. Briefly, while a government is determining consumption, financial aid and government investment, it must pay attention it?s countries provisions because these expenditures have a big role on improvement and growth in economy.