Recurrent government spending crucial for economic growth, not just investments!
Government spending in Pakistan plays a crucial role in boosting the economy. Both investing in new projects and maintaining existing structures are important for economic growth. Simply building things is not enough; they need proper funding for operation and upkeep to work effectively. This study shows that recurrent spending is just as vital as public investments in driving economic activity. It suggests that the composition of government expenditure needs to be reconsidered to maximize growth potential.