Explain factors that affect government expediture

Government expenditure should be split into two parts; Current expenditure, on things like civil servants salaries, and capital expenditure. Increased govenrment spending is an example of exspansiary fiscal policy which moves the AD curve to the right. Capital expenditure is what really affects aggregate demand and ranges from investment in infrastructure and government subsidies. When being asked about government spending, always think and focus on capital expenditure as the exam will really be asking what affects this type of spending. The first factor is the size of the deficit the government has. This is essentially tax income minus spending; the larger the defcit the less likely the government is to spend. This means the second factor is how willing the government is to borrow, which increases the national debt. The only other option is to increase taxes such as income tax, but this is contractionary to AD and would contradict the purpose of increasing government spending to a large degree. This factor thus relys on the political outlook of the government. This suggests a third factor, the performance of the economy. People expect a lot for their taxes, and if a downturn in the economy is occuring it is politically beneficial for the government to spend to boost AD and correct the reduction in demand. No government wants to decrease spending due to these political and economical reasoning, meaning this last factor should be seen as the most important factor.