A Modest Proposal

1. INTRODUCTION:

On the basis studying different books articles it is stated that, in country government role distribute among economic, non-economic and social sectors. Economy of a country grows and develop on the spending of government in the two main sectors. i.e. Economic expenditure and social expenditures. High the amount of spending leads to high growth of economy. The economic expenditure includes all those expenses which is directly (in term of financial benefits) contribute to the economic growth while in social expenditures also assist in the economic growth of country indirectly. (In term of social activities)

In Pakistan during last decade the huge decrease in the level of poverty i.e. 11.5% it is high contribution to economic growth. The declined in poverty is due to the expenditure of government in the economic and social sectors. In the last decade government incurred huge amount on both sectors from external resources (foreign aid, debt rescheduling, worker’s remittances, and foreign direct investment) as well

1.1. Problem Statement:

In my study I will find the impact and relationship of social and economic expenditures of government on economic growth of country. In previous researches Dr. Masood and Dr. Abdul Malik in 2011 give theoretical analysis about the impact of government expenditures on income distribution which show positive result. In 2013 Nkiru and Daniel find the impact of economic expenditures on the economic growth of Nigeria.

In my research I will find the impact of both social and economic expenditures of government on the economic growth of Pakistan.

1.2. Objectives:

The objectives of study are:

• To identify the impact of social and economic expenditures on economic growth of