I can look at my budget and say, "Wow I spend a lot on coffee, better stop". Are these savings a good or bad thing? You have to remember every transaction has two parties. If I stop buying coffee, maybe it's better for me, but it's not better for the coffee shops, and the coffee producers. Every transaction has two parties. So who are the parties on the receiving end of government spending? Well, it's the private sector. It's you and me.

To decide if it's a good thing you need to see if stopping the spending benefits BOTH parties.