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Intergovernmental expenditures are purchases and payments that take place between governmental units. Suppose the State Department of Meetings wants to hold an outdoor meeting at the State Park System of Nice Grassy areas.
The State Park System charges a fee for the use of their parks and a big fee (includes mowing, edging and clean-up) for the Nice Grassy areas. The fees that the State Park System charges are part of the expected revenues in that budget year. This is, they simply cannot give away Nice Grassy areas for free or they would have no money for mowing and edging and clean-up).
The State Department of Meetings has a budget for meetings. And they don't really want a free deal anyway; because they have to show how much their meetings actually cost. A free meeting would mess up their numbers.
Expenditures between governmental units keep the actual costs realized, just as business has to do. Sometimes these expenditures can be quite large.
Governmental expenditures are simply the regular cost of business in Government. Government buys lots of things, from people's time, to consultants' time, to capital equipment, to buildings to house government.
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