Final answer:
Caligula funded a variety of activities ranging from pragmatic infrastructure to cultural productions, using extreme taxation methods, including a tax on prostitutes. His reign is characterized by extravagant spending on public entertainment as well as personal indulgences.
Step-by-step explanation:
Emperor Caligula's reign was marked by grand and costly entertainments, which included everything from chariot races in the Circus to gladiatorial battles. Caligula utilized public funds in ways that ranged from practical infrastructure projects like aqueducts and harbors to cultural investments such as theaters and temples. Additionally, Caligula levied new and extreme forms of taxes, including a tax on prostitutes, to fund these lavish activities. He indulged in personal presentations of arts by participating in events as a gladiator, charioteer, singer, and dancer.
While some of these expenditures served public and cultural purposes, others were frivolous displays of his own power and grandeur. These included modifying statues of gods to bear his own likeness and engaging in costly personal hobbies. Despite some public benefit, the overarching narrative of Caligula's reign is one of extravagant personal indulgence at the expense of the empire's financial stability and the welfare of its citizens.