El gasto básico es el tuyo; espero que lo pagues.

Questions & Answers about El gasto básico es el tuyo; espero que lo pagues.

Why is it pagues with a "u" instead of "pages"?
The verb is pagar (to pay). In the present subjunctive, -ar verbs take -e endings, so the form ends in -es. However, in Spanish, a "g" before an "e" makes a soft sound (like an English "h"). To keep the hard "g" sound from pagar, we have to add a silent "u", making the spelling pagues.
Why do we use the subjunctive (pagues) here instead of the normal present tense (pagas)?
The phrase espero que (I hope that) is a classic trigger for the subjunctive. When you express a hope, wish, or desire about what someone else will do, the second verb (the action you are hoping for) must be in the subjunctive.
Why is it el tuyo instead of just tuyo?
Here, el tuyo is a possessive pronoun meaning "yours". It takes the place of the noun phrase "your expense". In Spanish, possessive pronouns usually require a definite article (el, la, los, or las) in front of them. We use el because it refers back to el gasto, which is masculine singular.
I thought gasto meant "I spend" (from the verb gastar). Why does it mean "expense" here?
You are absolutely right that yo gasto means "I spend". However, gasto is also a masculine noun meaning "expense". You can tell it's acting as a noun in this sentence because it comes right after the article el. It is very common in Spanish for nouns to be spelled exactly the same as the "yo" form of their related verbs.
What does lo mean here, and why is it placed before pagues?
lo is a direct object pronoun meaning "it", and it refers back to the expense (el gasto). Because pagues is a conjugated verb, the pronoun cannot be attached to the end; it must be placed directly before it.

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