Debt-financed fiscal stimulus programmes directly stimulate aggregate demand through government expenditure or tax cuts …, but their effectiveness is highly dependent on direct crowding out of private sector expenditure, spillover effects to the …) on short-term and long-term (nominal and real) interest rates. These disaggregated expenditure and revenue shocks raise …

revenues, which also improves fiscal sustainability. Specifically, rationalising public expenditures without jeopardising the …

fiscal consolidation. Moreover, the effect of rigid expenditure seems to be more relevant for economies with high inequality … composition of the measure of rigid expenditure, there is also some evidence that higher expenditure on pensions reduces the … probability of fiscal adjustment more robustly than higher expenditure on wages …

The paper attempted to analyzes linkages between fiscal policies (public expenditure and public debt) and economic … growth by investigating the impact of public expenditure and public debt on economic growth (GSDP). To find out empirically …) having 23 observations. The study results indicated that public expenditure correlates positively to GSDP while public debt …