“An empirical study on the correlation of Macro-Economic Indicator with Developmental and Non-Developmental Expenditures by Central Government: Evidence from India”

Abstract

This study aims to increase an expertise of the relation among the public expenditures and economic growth of India. Public expenditures consist of development and non-development expenditures incurred by central government of India. It has been observed with the help of this study that development expenditures play a dominant role not only in increasing the GDP rate of India but also in declining the poverty rate. And on the other hand, non-development expenditures are incurred for nonproductive area and these expenditures don not generate any revenue for the government. It can be concluded that non-development expenditures creates burden on government and the focus should be more on development expenditures because social and economic development of the country is directly connected with these expenditures. Statistical analysis is used to testify the study and support the conclusions drawn from it. This study would help to know the trends of public expenditures and its effect on economic indicators of India.