Background & objective: One of the most important issues for economic prosperity is the evaluating of how to govern income and expenditure and effects of them on the national production. Reliance on oil income due to the amount of sales and price fluctuations will make the government face with crisis to achieve its sovereign goals. The aim of this study was to investigate the effects of the expenses (spending) in various sectors such as health and sanitation area and government incomes on the country national production.

Methods: To prove the model is used John Minard Keans aggregate function in four states. The first state is the policy that the government does not intervene in the economy. That does not make any cost including social and economic and does not receive income from the people as tax income. The second state is the policy of government intervention (to the extent that the cost of taxes paid) and the impact that will have on the country. The third state is the policy with government intervention only through cost. The fourth state is the policy with government intervention only through tax incomes.

Results: Research finding showed applying expansible financial policy and contractible financial policy (simultaneous) is better than not implying that case. The effects of simultaneous tax receiving and costing by the government will be positive on the national production. The government in doing his sovereign duties with sanitary and therapeutic expenses, educational, redistribution incomes and improving sovereign indicators requires a stable and reliable financial resources and applying the appropriate financial policy.

Conclusion: Experience in developed countries has showed that creating the infrastructure by the government motivate the entrance of private sector on investment in production. Having a strong and effective budgeting with reliable and secure financial resources is necessary to manage the country successfully. Due to the need of country for economic growth and development in all fields especially in health and education, the necessity of government interference for necessary expenses is inevitable. Changes in taxes and national costs impress the national income and simultaneous changes in tax and government costs not only reduces one another to a degree, but also at least the size of government costs on the national production will be more affected.