The amount and composition of government expenditures and government revenues is determined by

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The amount and composition of government expenditures and government revenues are determined by fiscal policy, which is a set of government policies aimed at managing the overall level of economic activity, often through the manipulation of government spending and taxation. Fiscal policy aims to stabilize the economy by adjusting government spending and taxation to influence aggregate demand, production, and employment levels, and to achieve economic growth and stability. Monetary policy, structural policy, trade policies, and interest rate policies may also affect government expenditures and revenues but are not primary determinants.

The Amount and Composition of Government Expenditures and Government Revenues