The findings from the VECM for BBS data reveal that there is a positive and significant relationship between FD and GDPGR, supporting the Keynesian theory, while findings from the VECM for World Bank data indicate that the impact of Fiscal Deficit (FD) on GDPGR is mild but negative and...

To achieve sustainable economic growth of a country balanced budget is not only important but necessary. This research aims at investigating the true impact of the budget deficit on the economic growth of the country. The sample taken for the current study comprises of time-series considering...