See figure 1-2 at page 3, you can find what the federal government does and what the state and local governments do through watch their spendings, and what is the functions and priorities of government. But, we should remenmber, not everything that government does is shown in governmental expenditures, regulatory activities as an example. Social security and medicare outlays are the largest spending of federal government, spending of defense and health, welfare are the followings, but spending in education is very modest. State and local governments bear the major burden of public education, welfare and health functions consume large shares of their budgets than highways and law enforcement do.