how government acts as a welfare agency and as a producer in an economy?

Dear student Government acts as a welfare agency in a way that it ensures maintaining steady and consistent economic growth and stability by investing adequately in the social sectors such as education, health, heavy industries, etc. It also participates in the production process. They employ factors of production from the households and makes payments to them in return of their services. The government receives payment from both the firms and the households in the form of taxes (direct taxes and indirect taxes). It also makes payment to the households in the form of transfer payments (payments made without use of factor services) such as pensions, scholarships, etc. Similarly, it also makes payments to the firms in the form of subsidies (compensation to firms for lowering the prices). Regards