Effects of developmental and non-developmental expenditure on economics growth of India: An error correction model approach

In this article attempt is made to establish the relationship between developmental and non-developmental expenditure in India its influence over economic growth. For this, secondary data are used for period of 1991-2021 sourced from various state finance reports, Ministry Statistics Programme Implementation, World Bank, Indian Public Finance Statistics, annual budget allocation. To check long-run short-run among variables Autoregressive Distributed Lag (ARDL) model, Bound Test Error Correction Model techniques have been used. The ARDL estimates indicate that development having positive impact growth, however, it statistically insignificant. While population growth rate negative Further, (ECM) revealed there an existence too very sensitive, adjustment about 80 percent significant at 5 level. Therefore, suggested government focus more on goals rather issues because if problems address immediately time when arises then would also assist achieve sustainable