Nature and pattern of government expenditure and its impact on Economic growth of Tamilnadu

Aggregate demand in Keynesian economics is considered as a prominent factor in determining economic growth and development. Keynes projected effective demand and consumption expenditures influence economic development to a large extent. It may be postulated that expenditure and economic development are closely associated. More output and employment opportunity may be generated by increasing the level of expenditure. More consumption expenditure will positively influence growth and development. This study reveals that there is a strong association between government expenditure and gross state domestic product and also there is a strong association between expenditure on education.