Which of the following best describes Expenditures?

The concept of expenditures in the context of government finance refers specifically to the money that the government spends in order to fund its various activities and programs. This encompasses a wide range of spending, including operational costs, infrastructure projects, welfare programs, and public services. By defining expenditures in this way, it becomes clear how they play a crucial role in the functioning of government and the overall economy.

Monetary revenues collected by the government are a different aspect of fiscal policy, focusing on the income that the government receives rather than what it spends. Similarly, federal grants provided to local governments represent a subset of expenditures but are more specific to funding measures, not the broader concept of expenditures. Lastly, debt incurred by the government is related to how the government finances its spending but does not describe expenditures themselves; debt can result from expenditures that exceed revenue but does not define the act of expenditure itself.

Therefore, the option that clearly aligns with the definition of government expenditures is the one that refers to money spent by the government, capturing the essence of government financial outlays.