Impact of Non-Development Expenditure on Economic Development of Pakistan

Abstract

The purpose of this study was to identify the relationship between the non-development expenditure and 6 independent variables of economic development for that reason data was collected from the ministry of finance government of Pakistan and State Bank of Pakistan for above said variables for the period of 2000-01 to 2009-10 and linear regression was applied to identify the relationship and concluded that overall model is fit means independent variables in the equation is rightly predicting the dependent variable (non-development expenditure), but the strength of relationship is somehow high and positive of independent variables Health & Nutrition expenditure with the non-development expenditure, and unemployment rate and exports according to the data and results are negatively related with the non-development expenditure, which means exports must be increased to reduce the non-development expenditure.