This study intends to observe empirically the effect of government spending
in social sectors on economic growth during the period 1974-2008 in
Pakistan. The results of the study reveal the existence of positive relationship
between government expenditure on human capital and economic and
community services and economic growth. The government expenditure on
law and order and subsidies appear to be negatively related to economic
growth. This study may help the policy makers in formulating and
implementing policies consistent with the prevailing economic conditions of
the country. The study suggests that government expenditure on subsidies
should be gradually reduced and expenditure on law and order needs to be
re-allocated for providing educational and training facilities to the
concerned employees responsible for maintaining law and order in the
country.
Nabila Asghar, **Parvez Azim, Hafees ur Rehman. (2011) Impact of Government Spending in Social Sectors on Economic Growth: A Case Study of Pakistan, , Volume-03, Issue-2.
