Government spending
Rank Country Spending ( US $ Bn . ) % of GDP
1 World total 1,686 2.2
0 1 United States 611.2 3.3
0 2 China , P.R 215.7 1.9
0 3 Russia 69.2 5.3
0 4 Saudi Arabia 63.7 10
0 5 India 55.9 2.5
0 6 France 55.7 2.3
0 7 United Kingdom 48.3 1.8
0 8 Japan 46.1 1.0
0 9 Germany 41.1 1.2
10 South Korea 36.8 2.7
List by the Stockholm International Peace Research Institute2017 Fact Sheet ( for 2016 ) [ 13 ] SIPRI Military Expenditure Database [ 14 ]
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. Government spending can be financed by government borrowing, or taxes. Changes in government spending is a major component of fiscal policy used to stabilize the macroeconomic business cycle.