Impact Of Government Expenditure On Gross Domestic Product In Kenya D63/78857/2015

Abstract

The study was carried out exhaustively find out the impact of government expenditure in Kenya. The study had one objective to exhibit the implications of government expenditure on GDP in the country of Kenya. Research design employed a descriptive study of selected government functions in Kenya including Defence/security, Health, Education and Agriculture. Secondary data was collected from the Kenya Bureau of Statistics. Percentages changes and ANOVA tables and T-statistics tables were employed to test the data to achieve the set goals whereas regression analysis was used to determine the connection that lies in government expenditures and gross domestic product. Results were presented in tables, line graphs and bar graphs. An observation was made which implied under 5% level of significance, the regression model is overall statistically significant, deducing that it is a suitable prediction model for explaining how government expenditures to different functions adds value to gross domestic product with expenditures on education being a suitable predictor of gross domestic product. This study therefore advocates that for effective functioning and efficient allocation of government revenues to different government functions, use of modern allocation methods should be well understood and carried out all stakeholders to arrive at real intrinsic value. Stakeholders should be equipped with satisfactory information before and post-spending and be aware of benefits, challenges and the effects of expenditure allocations those functions.