Ace the AQA GCSE Citizenship Challenge 2025 – Unleash Your Inner Citizen!

The term that refers to the money spent by the state is public spending. This encompasses all expenditures by government entities for various purposes, such as providing services, infrastructure, and social welfare programs. Public spending is crucial for the functioning of a society as it includes investments in education, healthcare, public transportation, and other necessary services that benefit the community as a whole.

In contrast, private investment refers to funds invested by individuals or corporations into businesses or assets rather than government spending. Capital expenditure is a subset of spending that specifically relates to investing in long-term assets such as buildings or equipment. Government revenue, on the other hand, refers to the money that a government collects through taxes and other means but does not directly indicate spending. Thus, public spending is the most accurate term for describing the state’s expenditures.