Is there a relation between the government’s budget (revenue, spending, deficit) and the GDP of countries? Has the type of spending and destination a positive effect in the population? In this third post, we check any potential correlation between the categories of spending and the GDP / capita. There is a very high correlation between budget spending of governments and GDP per capita (0.88 – very high). However, interestingly, there is only significant correlation with the spending type “public order and safety”, with negative correlation (-0.62 – high). There is low or very low correlation between GDP per capita and the rest of the spending types. Next post in a week…
file: budget vs GDP 3_8
