Answer:
Above question need to be reworded as ‘Taxation an injection and government spending a leakage’.
Taxation on the public, injects money into the government coffers and therefore the economy. Whereas government spending is a leakage from the treasury. Various taxes that are levied on products and services, fetch the government, money. Government spending by way of projects, expenses on law-makers etc., are met out of income from taxes or surcharge.
Explanation:
