Relationship between budget spending and economic growth in the socialities

Abstract

Economic growth of a country involves a number of factors including financial policy witj its government's budget spending as a specific example. The budget spendings in Vietnam in recent years have tended to grow and accounted for a high proportion of GDP (from 23.36 per cent in 2000 to 29.79 per cent in 2006), causing an increase in state budget decifits and high inflation, effecting the economic growth.

However the question: How much the impact of the government's budget spending will leave on the economic growth has not been clearly identified, meanwhile this question is off great importance for the renovation of structure in the government's budget spending.

Based on the figures of budget spending in some localities the writer focuses his analysis on the relations between budget spending structure and economic growth

His article is focused on the follwing contents:

1. Background

2. Models of application for the research

3. Practical analysis

4. Conclusion