Economic Impact of Government Expenditure on Economic Growth of Nepal

Authors

  • Khom Raj Kharel Saraswati Multiple Campus, Tribhuvan University, Nepal
  • Dipak Bahadur Adhikari Patan Multiple Campus, Tribhuvan University, Nepal

DOI:

https://doi.org/10.3126/ijmss.v2i2.42601

Keywords:

Government expenditure, Impact, Economic growth, Descriptive statistics, Nepal

Abstract

This paper examines the relations of government expenditure and economic growth of Nepal over the period of 1990-2019.The government expenditure of Nepal has been significantly increasing during the study period. The pattern of government spending of Nepal seems to be focused on regular expenditure and widening the budget deficit of Nepal each and every years. The track of capacity of government expenditure utilization has mostly found less efficiency which has historical tendency of Nepalese government. As per size of economy expanding, the gap of fiscal deficit has been expanding in Nepal. The objective of this study is to analyze the impact of government expenditure on economic growth of Nepal by using simple and multiple linear regression models. Descriptive and analytical research design has been used by using secondary data. The finding of the study shows that there is significant/insignificant impact of government spending on economic growth of Nepal during the study periods and addresses to be focused on increase the mobilization of capital expenditure for the expansion of development activities with rational manner of the country.

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Author Biographies

Khom Raj Kharel, Saraswati Multiple Campus, Tribhuvan University, Nepal

Associate Professor of Economics, Humanities Faculty: Economics Department

Dipak Bahadur Adhikari, Patan Multiple Campus, Tribhuvan University, Nepal

Assistant Professor, Economics, Humanities Faculty: Economics Department

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Published

2021-12-31

How to Cite

Kharel, K. R., & Adhikari, D. B. (2021). Economic Impact of Government Expenditure on Economic Growth of Nepal. Interdisciplinary Journal of Management and Social Sciences, 2(2), 50–58. https://doi.org/10.3126/ijmss.v2i2.42601

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Articles