The term “business to government” (B2G) refers to the process whereby businesses provide goods or services to government agencies. This includes activities such as procurement, contracting, and grant-making. The government spends money on a variety of goods and services from businesses of all sizes. In the United States, the federal government spends more than $3 … Read more
A fiscal deficit occurs when the government’s total spending exceeds the revenue it collects from taxes and other sources. This deficit must be financed by borrowing, which leads to an increase in the national debt. A fiscal deficit is often seen as a bad thing, because it means that the government is borrowing money that … Read more
A special revenue fund is a government fund that is used to finance specific activities or programs. The money in the fund can only be used for the purpose for which it was intended and cannot be used for other purposes. Special revenue funds are usually supported by dedicated revenue sources, such as taxes, user … Read more
Government purchases are spending on goods and services by the federal government. It includes spending on national defense, public safety, and public health. It also includes spending on social welfare programs, such as Social Security and Medicare. Government purchases also include spending on infrastructure, such as roads, bridges, and schools. What are the two types … Read more
Gross National Income (GNI) – Definition and Real-World Example. Which country has highest GNI? According to the World Bank, the country with the highest GNI per capita is Luxembourg, with a GNI of $112,710 per capita. This is followed by Switzerland ($86,760), Norway ($79,990), and Iceland ($77,180). Which country has the highest total GNI? According … Read more
Economic integration is a term used in economics to describe the process by which two or more economies become integrated. Integration can be achieved through various means, including trade, investment, financial integration, or even by simply sharing a common currency. The main benefits of economic integration are increased trade and investment, and increased efficiency. When … Read more
Public sector net borrowing is the total amount of money that the government borrows from the public sector in a given period of time. This includes money that is borrowed from other government agencies, as well as money that is borrowed from the private sector. Does borrowing lead to inflation? There is no simple answer … Read more
The fiscal imbalance is the difference between the government’s total revenue and its total spending. The government’s revenue comes from taxes, fees, and other sources, while its spending includes expenses such as salaries, benefits, and interest on debt. If the government’s revenue is greater than its spending, the fiscal imbalance is said to be positive. … Read more
A sovereign wealth fund (SWF) is a pool of money created by a government to invest on behalf of the country. The money in the fund comes from a variety of sources, such as surplus revenues, foreign currency reserves, and the sale of state-owned assets. The primary purpose of a SWF is to benefit the … Read more
The U.S. Department of Agriculture (USDA) defines Electronic Benefits Transfer (EBT) as “a system that allows state welfare departments to issue benefits via a magnetic stripe card, similar to a credit or debit card, which recipients can use to purchase items at authorized retail stores.” In other words, EBT is a way for people who … Read more
