Boosting capital expenditure in India leads to economic growth surge!
The study looked at how government spending affects economic growth in India from 1980 to 2015. They found that certain types of government spending, like capital expenditure, have a positive impact on GDP. Capital expenditure leads to economic growth, and GDP also influences revenue expenditure. This means policymakers should focus on capital spending to boost the economy. On the other hand, increasing GDP leads to higher revenue expenditure, so caution is needed in managing this type of spending. The results support the idea that government spending plays a crucial role in shaping the economy.