Abstract
Ensuring high and sustainable economic growth is one of the main tasks of public spending policy. In fact, public expenditure plays an important role in the formation of physical and human capital over time. If are properly targeted, they can stimulate economic growth even in the short term, when limited infrastructure of (unskilled) workforce is a barrier to increased production. Therefore, the realized impact of public expenditures on economic growth can be considered as an indicator of their effectiveness.
 The goal of public expenditure is to increase economic growth by providing more employment opportunities, increasing people's income and living standards. Therefore, if they are well-managed, they can lead to the desired level of economic growth and improvement of the living standard of the population.
Highlights
Introductory observations Due to the fact that the effective and efficient operation of the public sector is important for economic growth, empirical studies in this field often aim to propose ways to improve the structure of public expenditures in the function of their higher effectiveness
It is clear that the analysis of the impact of public expenditure on economic growth is a key step in understanding the sources, the consequences and future growth movements, and in finding appropriate solutions and recommendations to increase the contribution of various public expenditures in achieving that goal
A common consensus among researchers is that public sector spending is identified as an important tool by which the government affects the performance of the economy
Summary
A number of studies have analyzed the effects of certain components of public expenditure on economic growth. 3. Methodology, specification and model analysis This segment of the study aims to examine the impact of government spending on the economic growth of the Macedonian economy.
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