The key therefore is to carefully differentiate between wasteful and necessary
government expenditure and undertake some bold reforms or else the budget cuts will do more harm than good.
A brief discussion is then provided to motivate the link between state government output and state
government expenditures. We then discuss the panel data, identification strategy, and the empirical methodology that is used in order to test our hypothesis that the growth in state
government expenditures was greater after the introduction of air conditioning in states' capitols.
'The rising unemployment has often been correlated with
government expenditures. As government spends its money through its programs and projects, especially in infrastructure, more jobs become available since more workers are needed to implement such projects,' the Minority bloc said in a statement read by Minority Floor Leader Rep.
As college enrolments continue to increase in India, with high cut offs, unless appropriate policy measures are implemented by the concerned ministries and government departments, including action from the center,the declining trend in tertiary education expenditure, in proportion to the total
government expenditure on education, will most likely have a negative impact on the nation's economic growth and development in the long run.
Eurostat mentioned that among the main functions of general
government expenditure in the European Union (EU), 'social protection' was by far the largest in 2016, equivalent to 19.1 per cent of GDP on average.
The importance of
government expenditure has been received much attention by academician and policy makers in the last decade (see for example: IMF, 2008).
Other importance of
government expenditure includes the provision of those facilities that are not covered by the market economy such as health economic growth.
Government expenditure presents the ratchet up effect; as the tax revenues increase the corresponding
government expenditures also increase and keep on increasing.
The budget features a rise in infrastructure spending, which makes up 21 per cent of the total
government expenditure. This reflects the directives of His Highness the Ruler of Dubai to raise infrastructure efficiency in Dubai in order for the emirate to become the preferred destination for living, tourism, and business across all sectors.
However, new growth theory or the endogenous growth framework suggested that
government expenditure could have temporary and permanent effects on a country economic growth (Barro, 1988).
Therefore, a separate model is estimated in which debt is not considered as an exogenous variable, in order to compare
government expenditure multipliers with and without controlling for debt.
Despite the slump in oil prices, GCC infrastructure projects are seeing unprecedented investment, with
government expenditure expected to hit $288bn through to 2020, according to a report by project tracker, Ventures Onsite.