Neproduktyvios valstybės išlaidos ir jų poveikis ekonomikos augimui
Unproductive expenditure of the government and its influence to economic growth

Summary/Abstract: According to research papers, which were used to analyze statistical data, it was found that government expenditure is usually analyzed using functional approach. They are separated depending on economic sectors and their functions in the economy. These expenditures are identified as productive and unproductive; while other authors are tend to identify them as social and unsocial. In this article the first identification of government spending was analyzed, because it is more orientated to find the harm for economic growth, while analyzing their function instead of their purpose. Unproductive spending consists of expenditures for social welfare, expenditures for common government needs, leisure, culture and religion. The article analyzed the effectiveness of government expenditure allocation according to the opinion of different authors about unproductive expenditure and its influence to economic growth. We can make a finding that during financial crisis period Lithuanian government was using some part of the productive expenditure to finance increased amount of unproductive - social expenses. It allows making a presumption that increasing unproductive expenditure by decreasing productive expenditure is more acceptable and has bigger influence than constant and increasing financing of productive expenditure in a short period. It is analyzed that the changes in unproductive expenditure has impact during the short period, while productive expenditure - in a long term period, because productive expenditure has persistent and accumulative value. Unproductive expenditure is found to be as a poison for an economy, because it takes money from productive sectors and redistribute them for unproductive ones. The biggest part in the sector of unproductive expenditure takes social needs. This sector is highly affected by the changes in the economy, so it fluctuates a lot. Research helped to find that during the period since 2002 till 2010 the part of social expenditure grew much more than expenditure for leisure, culture, religion and common government expenditures. It was found that the relations between unproductive expenditure and government debt, unemployment level and social expenditure are very close and gives very high correlation coefficients. These relations were confirmed by the regression analysis which showed high regression coefficient that the model can be used to explain the statistical data. All data was analyzed by using 95% confidence interval. The purpose of unproductive expenditure is to finance the most vulnerable sectors that must be promoted by the government. Although government cannot adjust the economy of the world, they can use macroeconomic decisions to influence the changes in their own expenditure keeping the productive expenditure more promoted than unproductive. The purpose of the government, while talking about expenditure, is to keep unproductive expenditure as low as possible in order to finance productive sectors, but it is also important to keep the level of main services of the government at decent level in order to help the poor.

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