Difference Between Government Spending And Private Spending

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The government (public) spending can be defined as the expenditure funded by the governments while private spending can be defined as the expenditure funded by private sources. The differences between the government spending and private spending can be seen in the terms of objective, decision making, resource fund and procedures.
The objective of the Government Spending or the public spending is by the operations and developments done by sectors. According to the Economics Online (2015) in the government spending, the operations would be in achieving the supply-side improvements in the macro-economy, when the spending will be on education and training to improve labour productivity. To differentiate the government spending and the private spending, the government spending is purposely to subsidies industries which may need financial support, which will not be available from the private sector. For example, transport infrastructure projects are unlikely to attract private finance, unless the public sector provides some of the cost for them. On 2009, in the case of the UKs Private Finance Initiative – PFI, the UK government provided huge subsidies to the UK banking sector to help deal with the financial crisis
On the other hand, the objective of the private spending or the consumer spending is where the profit and investment is the most important elements. This is because, by the article by Herbert, C. (2013) stated that in the private sectors, it is more flexible and is also

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