The composition of public spending is crucial for promoting economic development and reducing poverty. While growth and redistribution are important for poverty reduction, there is a lack of a clear framework to assess the impact of public spending on these goals. By combining public economics and growth theory, a new framework is proposed to guide public expenditure policy. This framework emphasizes the roles of the private and public sectors, as well as the importance of tailored policy recommendations based on empirical analysis. Ultimately, a better understanding of the effects of different types of public spending is needed to create effective policies that promote growth, equity, and poverty reduction.