Since government is treated as a final consumer, the purchase of goods and services increases its spending. Clearly, government expenditure can be higher than what it charges (e.g. fees for services) because it raises taxes to cover the difference. But need the value of government be undermined because of the way prices are set? By not having a way to capture the production of value created by government–and by focusing more on its ‘spending’ role–the national accounts contribute to the myth that government is only facilitating the creation of value rather than being a lead player.
