Government Spending as % of GDP

Extracted Attributes

• Definition

  Includes all government consumption, investment, and transfer payments, representing the acquisition of goods and services for current use and future benefits.

• Economic Role

  A major component of fiscal policy used to stabilize macroeconomic business cycles and provide essential public goods and services.

• US Record Low

  6.55 percent of GDP in 1907

• US Record High

  47.01 percent of GDP in 2020

• Components of GDP

  Government final consumption expenditure and government gross capital formation.

• US Current (2024)

  39.7 percent of GDP

• Funding Mechanisms

  Government borrowing, taxes, custom duties, sale or lease of natural resources, and various fees; nominally self-financing for currency-issuing governments.

• Historical Context

  Limited by laissez-faire philosophies until the 19th century, its pivotal role in influencing income levels and economic distribution was emphasized by John Maynard Keynes in the 20th century.

• US Projection (2025)

  35.50 percent of GDP

• US Projection (2026)

  34.00 percent of GDP

• US Projection (2027)

  36.00 percent of GDP

• US Average (1900-2024)

  25.79 percent of GDP

• Theoretical Link to Socialism

  Increasing government spending as a percentage of GDP, potentially approaching 50%, is linked to a greater acceptance of socialist ideas, which could alter public incentive structures.

Timeline

• Public expenditure was generally limited due to prevailing laissez-faire philosophies. (Source: Wikipedia)

  19th century

• Government spending in the United States reached a record low of 6.55 percent of GDP. (Source: Trading Economics)

  1907-XX-XX

• Total government spending in the US was 12.1 percent of GDP, while total government revenue was 11.1 percent of GDP. (Source: A Short History of Government Taxing and Spending in the United States (PDF))

  1930-XX-XX

• John Maynard Keynes argued for the pivotal role of public expenditure in determining income levels and economic distribution. (Source: Wikipedia)

  20th century

• Total government spending in the US grew to 35.6 percent of GDP, and total government revenue grew to 26.4 percent of GDP. (Source: A Short History of Government Taxing and Spending in the United States (PDF))

  2012-XX-XX

• Government spending in the United States reached an all-time high of 47.01 percent of GDP. (Source: Trading Economics)

  2020-XX-XX

• Government spending in the United States was last recorded at 39.7 percent of GDP. (Source: Trading Economics)

  2024-XX-XX

• Government spending in the United States is expected to reach 35.50 percent of GDP. (Source: Trading Economics)

  2025-XX-XX

• Government spending in the United States is projected to trend around 34.00 percent of GDP. (Source: Trading Economics)

  2026-XX-XX

• Government spending in the United States is projected to trend around 36.00 percent of GDP. (Source: Trading Economics)

  2027-XX-XX

• David Friedberg posits a theory that increasing acceptance of Socialism is linked to Government Spending as % of GDP approaching 50%, altering public incentive structures. (Source: Related Document)

  Present

Government spending

Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government gross capital formation). These two types of government spending, on final consumption and on gross capital formation, together constitute one of the major components of gross domestic product. Spending by a government that issues its own currency is nominally self-financing. However, under a full employment assumption, to acquire resources produced by its population without potential inflationary pressures, removal of purchasing power must occur via government borrowing, taxes, custom duties, the sale or lease of natural resources, and various fees like national park entry fees or licensing fees. When these sovereign governments choose to temporarily remove spent money by issuing securities in its place, they pay interest on the money borrowed. Changes in government spending are a major component of fiscal policy used to stabilize the macroeconomic business cycle. Public expenditure is spending made by the government of a country on collective or individual needs and wants of public goods and public services, such as pension, healthcare, security, education subsidies, emergency services, infrastructure, etc. Until the 19th century, public expenditure was limited due to laissez faire philosophies. In the 20th century, John Maynard Keynes argued that the role of public expenditure was pivotal in determining levels of income and distribution in the economy. Public expenditure plays an important role in the economy as it establishes fiscal policy and provides public goods and services for households and firms.

Web Search Results

• United States Government Spending To GDP - Trading Economics

  Government spending in the United States was last recorded at 39.7 percent of GDP in 2024 . Government Spending to GDP in the United States averaged 25.79 percent of GDP from 1900 until 2024, reaching an all time high of 47.01 percent of GDP in 2020 and a record low of 6.55 percent of GDP in 1907. source: U.S. Bureau of Economic Analysis [...] ### Government Spending to GDP in the United States is expected to reach 35.50 percent of GDP by the end of 2025, according to Trading Economics global macro models and analysts expectations. In the long-term, the United States Government Spending To GDP is projected to trend around 34.00 percent of GDP in 2026 and 36.00 percent of GDP in 2027, according to our econometric models. percent of GDP 5Y10Y25YMAX Export API OK Loading... 2013 2017 2021 [...] | Government Debt to GDP | 124.30 | 122.30 | percent of GDP | Dec 2024 | | Government Revenues | 850169.00 | 367645.00 | USD Million | Apr 2025 | | Government Spending | 3989.20 | 3996.30 | USD Billion | Mar 2025 | | Government Spending to GDP | 39.70 | 34.38 | percent of GDP | Dec 2024 | | Holidays | | | | | | Military Expenditure | 997309.00 | 916014.70 | USD Million | Dec 2024 |

• [PDF] A Short History of Government Taxing and Spending in the United ...

  • From 1930 to 2012, total government revenue grew from 11.1 percent of GDP to 26.4 percent of GDP, and total government spending grew from 12.1 percent of GDP to 35.6 percent of GDP. • Until 1940, state and local government were responsible for most government spending and collected most government revenues, except during major wars. [...] Government Finance, Historical Data: 1992, govs/local/historical_data_1992.html. 20 U.S. Census Bureau, Jeffrey L. Barnett & Phillip M. Vidal, State and Local Government Finances Summary: 2011 (July 2013), 10 From 1930 to 2012, Total Government Revenue Grew from 11.1 Percent of GDP to 26.4 Percent of GDP and Total Govern­ ment Spending Grew from 12.1 Percent of GDP to 35.6 per­ cent of GDP Chart 4 presents the time paths of receipts and expenditures for all levels of government. The patterns [...] rest of the economy, although not nearly as much as the federal government. Between 1930 and 2012, state and local government receipts grew from 8.0 percent to 13.0 percent of economic output, while their expenditures rose from 9.1 percent to 14.8 percent of output. For the overall government sector from 1930 to 2012, receipts increased from 11.1 to 26.4 percent of gross domestic product (GDP) and expenditures rose from 12.1 to 35.6 percent of GDP .

• List of countries by government spending as percentage of GDP

  | Country | Government revenue (% of GDP) | Government expenditure (% of GDP) | Net lending/borrowing (% of GDP) | | --- | --- | --- | --- | | Image 4Afghanistan (2023) | 15.529 | 16.887 | -1.189 | | Image 5Albania | 28.625 | 30.819 | -2.194 | | Image 6Algeria | 29.2 | 38.48 | -9.281 | | Image 7Andorra | 38.406 | 36.702 | 1.704 | | Image 8Angola | 18.014 | 16.441 | 1.573 | | Image 9Antigua and Barbuda | 17.36 | 18.471 | -1.111 | | Image 10Argentina | 31.924 | 32.012 | -0.088 | [...] | Australia | | | | | | 2.66 | 7.69 | 5.47 | 7.07 | 12.22 | 21.83 | 25.32 | 33.21 | 36.10 | 35.63 | 37.16 | 44.98 | | Austria | | | 11.36 | 13.45 | 15.59 | 17.33 | | 19.80 | | 36.36 | 36.29 | 39.54 | 50.01 | 51.51 | 51.94 | 52.53 | 57.90 | | Bangladesh | | | | | | | | | | | | | 15.03 | 12.50 | 13.24 | 14.59 | 15.03 | | Belgium | | 4.80 | 6.18 | 8.74 | 9.90 | 10.78 | | 19.09 | | 22.85 | 23.75 | 42.66 | 54.89 | 52.31 | 49.08 | 52.94 | 60.80 | [...] | France | | 13.24 | 13.24 | 11.36 | 11.42 | 10.56 | | 18.65 | | 24.12 | 22.18 | 20.50 | 45.96 | 49.58 | 51.69 | 56.63 | 62.40 | | Germany | | | 10.31 | 16.32 | 17.85 | 19.47 | | 16.34 | | 27.17 | 22.94 | 39.46 | 48.23 | 44.73 | 45.10 | 47.87 | 51.09 | | Ghana | | | | | | | | | | | | 12.17 | 11.19 | 11.85 | 20.10 | 24.11 | 28.28 | | Greece | | | 23.55 | 25.70 | 19.75 | 19.65 | | 26.00 | | 27.09 | 19.95 | 25.17 | 27.66 | 45.21 | 47.12 | 50.24 | 58.19 |

• Government expenditure, percent of GDP

  All Country Data Excel file Map.PNG image Chart.PNG image Social Media Thank you!Share APIHelp Copy and paste URL to desired location Copy ### Select another indicator - 7 more indicators Government revenue, percent of GDP ================================== % of GDP 29.21 2023 United States Government primary expenditure, percent of GDP ============================================== % of GDP 32.42 2023 United States [...] 1990 1995 2000 2005 2010 2015 2020 2023 United States 36.28 France 56.99 Japan 41.16 United Kingdom 44.17 Sweden 47.49 Spain 45.31 Italy 53.8 South Africa 32.62 India 29.12 Add an item to the chart Reset United States France Japan United Kingdom Sweden Spain Italy South Africa India United States France Japan United Kingdom Sweden Spain Italy South Africa India Selected Country Data Excel file [...] confirm cancel reset 40 or more 30 - 40 20 - 30 10 - 20 0 - 10 no data Map disclaimer Country Region Analytical group Country Value Albania 29.17 Algeria 38.06 Angola 19.24 Antigua and Barbuda 18.44 Argentina 37.83 Aruba 21.7 Australia 37.2 Austria 51.98 Azerbaijan 32.76 Bahamas, The 24.16 Bahrain 29.84 Bangladesh 12.79 Barbados 28.27 Belgium 54.58 Belize 24.27 Benin 19.17 Bhutan 29 Bolivia 38.06 Brazil 45.45 Bulgaria 37.74 Burkina Faso 29.19 Burundi 29.1

• Government Spending to GDP by Country - Trading Economics

  | Country | Last | Previous | Reference | Unit | | --- | --- | --- | --- | --- | | France | 57.1 | 56.9 | Dec/24 | % | | Austria | 56.3 | 52.7 | Dec/24 | % | | Finland | 55.6 | 53.4 | Dec/23 | % | | Belgium | 54.5 | 53.3 | Dec/24 | % | | Italy | 50.6 | 54 | Dec/24 | % | | Greece | 50.5 | 53.1 | Dec/23 | % | | Sweden | 50 | 49.4 | Dec/24 | % | | Cuba | 49.8 | 58.8 | Dec/22 | % | | Euro Area | 49.6 | 49.5 | Dec/24 | % | | Germany | 49.5 | 48.4 | Dec/24 | % | | Poland | 49.4 | 46.9 | Dec/24 | % | [...] | United Kingdom | 44.7 | 44.8 | Dec/23 | % | | Estonia | 44 | 43.7 | Dec/24 | % | | Netherlands | 43.5 | 43.5 | Dec/23 | % | | Romania | 43.5 | 40.6 | Dec/24 | % | | Czech Republic | 43 | 43.9 | Dec/24 | % | | Portugal | 42.8 | 42.3 | Dec/24 | % | | Bosnia And Herzegovina | 42.7 | 40.3 | Dec/23 | % | | Israel | 41.5 | 39.1 | Dec/23 | % | | Japan | 41.16 | 41.8 | Dec/23 | % | | Cyprus | 40 | 42 | Dec/24 | % | | Bulgaria | 39.8 | 38.8 | Dec/24 | % | | Lithuania | 39.5 | 37.4 | Dec/24 | % | [...] | Norway | 49.3 | 46.7 | Dec/24 | % | | European Union | 49.2 | 49 | Dec/24 | % | | Faroe Islands | 49 | 47.4 | Dec/23 | % | | Slovakia | 47.1 | 48 | Dec/24 | % | | Hungary | 46.9 | 49.2 | Dec/24 | % | | Luxembourg | 46.9 | 47 | Dec/24 | % | | Slovenia | 46.8 | 46.5 | Dec/24 | % | | Denmark | 46.5 | 46.8 | Dec/24 | % | | Latvia | 45.7 | 43.7 | Dec/24 | % | | Spain | 45.4 | 45.4 | Dec/24 | % | | Iceland | 45.1 | 46.5 | Dec/23 | % | | Serbia | 44.8 | 46.9 | Dec/23 | % |