If the government raises its expenditure on producing public goods, it reflects that government is serving the objective of social welfare. Public goods are those goods which satisfy collective consumption needs i.e., health, education, fresh air, civic amenities etc. When government raises its expenditure on public goods, residents of a country are benefitted by being provided with these basic amenities. Healthy and educated people are more efficient which can lead to increase in GDP in future too.
Thus, it will improve the overall quality of life of the people in the country.
