Portugal has struggled with controlling public spending in the past 20 years. A study analyzed the effects of government spending and revenue on the economy using data from 1979 to 2007. The results show that when the government increases spending, it can actually decrease real GDP, reduce private consumption and investment, and raise the price level and government debt costs. On the other hand, when the government gets more revenue, it can lower GDP and decrease the price level. It's important to consider how government debt changes over time. Unexpected increases in government spending can lead to crowding-out effects, where private spending is reduced.