1. Public Expenditure, Taxation and Budget

2. Public Expenditure Government expenditure Government Investment
Transfer Payments

3. Government Expenditure is also known as Current expenditure
Government Expenditure is also known as Current expenditure. This is used for day to day functioning of the government.E.g Salaries to government laborers
Government Investments are investments for future purposes such as in roads, hospitals and other government buildings
Transfer payments are expenses on benefits provided to the unemployed, sic and pensioners

4. Government spending
Public goods- Goods and services that people would like to have but the market system would not be able to give to the people. E.g. law and order, defence
Merit goods- Goods and services that the government feels all individuals should have as a whole.E.g. Education, health and services.

5. Social reasons- Benefits to the unemployed,sick and pensioners for the welfare of the state.
Controlling the economy- Fiscal Policy(Taxation) to govern the economy and for the welfare of the people
Overseas spending- Helping other countries suffering from disasters like an earthquake or draughts.

6. Profit from public sector Public Borrowing
Interest payment from loan given by government
How the government raises money
Rent from government owned land and building
Taxation

7. Why does the government impose taxes
To reduce inequality
To raise money for government
spending
To protect the environment
Why does the government impose taxes
To restrict consumption of harmful goods
To boost employment and control inflation
To encourage domestic firms