Analyzing The Effect Of Governments Spending On India's Economic Growth

Abstract

The key findings suggest that, government of India’s expenditure has a significant impact on the growth and development of the country and it also highlights the strong relationship with economic growth and revenue generation in the short-run. The finding also sheds the light on the impact on the GDP and FDI and thus helps to understand the significance of the positive relationship with economic growth in both the short-run and long-run. The spending done by the government helps the poor people of India as it helps to enable the redistribution of income of the population and thus results in high consumption capacity of poor people. Therefore, government expenditure help to boost capacity consumption and other associated economic activity.