Affiliation:
1. Vivekananda Institute of Professional Studies, India
2. Sant Hirdaram Girls College, Barkatullah University, India
Abstract
Despite significant research, no one has been able to conclusively prove the link between government spending and GDP growth. The study is of utmost importance due to the lack of agreement on the conclusions of the prior empirical findings. According to the findings of a recent literature analysis, increased government spending is associated with increased economic growth. The purpose of the study is to show the impact of public spending on economic growth. In the current study, the qualitative method is utilized to understand the objective of the research. Government expenditure does not necessarily have a positive effect on the economy, according to research. In some trials, researchers found no difference between whether it had a positive or negative effect. There is some evidence to suggest that government expenditure contributes to economic growth, although this is not conclusive. The study suggests that high income countries should reduce their overall spending and evaluate how they spend money on education and healthcare in order to make those areas of spending more productive.