It may be deem that no society reaped towering echelon of economic opulence without the intervention of government. The optimal design of government spending is an issue that has long flummoxed economic policy makers and captivated economic theorists. This research is intended to find out the optimal level for different categories of government spending like total government expenditures, current expenditures, development expenditures, and defense expenditures in Pakistan covering the time period of 1984–2015. The Scully model is applied to investigate the optimal level of different categories of public spending so that economy may gain the maximum level of economic growth.
Economic Growth, Institutions, Fiscal Policy
