How do we know a spending In terms of economics, it involves the disbursement of a sum of money that is destined to settle a purchase or to pay a supplier, among others.
Meanwhile, a current expenditure it is the one that carries out a state with the mission of hiring personnel or, failing that, that destined to the purchase of supplies, goods and services that are essential to satisfactorily carry out the administration functions that it is capable of deploying. In other words, current expenditure is especially linked to production and consumption carried out by the state of specific issues, as we have already mentioned, paying the personnel that hires or paying for those products and services that you need.
By case and as such, it has the clear mission of developing the corresponding administrative functions so that they are as efficient as possible. Because of course, without the corresponding human and material resources it would be impossible to carry them out and we would be facing a state that cannot solve the basic problems of its citizens.
As a consequence, these expenses will not have the creation of assets, they will not be recovered because they basically involve consumption expenses.
Then, the current expenses made by the states or government administrations are used to specify what we could consider as ordinary activities associated with production, the provision of services, maintenance, activities that involve research and development of those areas that demand it. and that, as we can imagine, they always require special tools to be able to be carried out efficiently.
Among others, the most common and well-known current expenses incurred by an administration are: salaries, social security payments, food, tools and utensils, raw materials, elements that are used in production, banking services, rentals, among many others.
