Impact of Government Spending in Education on Economic Growth in Pakistan

The purpose of this research is to examine empirically how government spending contributes to economic growth in Pakistan from 2004 to 2014. Using the regression linear model, government spending resulted in insignificance relationship between government expenditure and economic growth however it could have significant relationship in long run. The study has found 4 variables that is education, health, GDP and GDP per capita. Government should make policies regarding its spending on education and health sector. Government should make budget to promote education. Economic growth represents the development of a country’s potential outcomes from its GDP. The main object of this study is to find out the impact of government spending in education on economic growth in Pakistan. This research study is descriptive in nature and involved quantitative data analysis which employed secondary data to examine the effect of government expenditure on economic growth in Pakistan. Data for education expenditure, health expenditure, GDP and GDP Per capita is obtained from World Bank from 2004 to 2014. The research study’s findings stated that there is insignificance relationship between government spending in education and economic growth. The government should emphasize on proper budgeting of its expenditure. Thus it has been recommended that government should spend fairly on education in order to increase economic growth.