The budgetary process and economic growth: Empirical evidence of the Jamaican economy

Empirical evidence from the study shows that Wagner's law exists in Jamaica as the country's economic growth is driven by fiscal spending. This evidence is maintained even when inflation and population growth are accounted for in the economic growth and government spending data in the country. There is also no relationship between government spending and taxes in the country over the short-term. This depicts that the budgetary process is determined along antagonistic party lines considering that government spending and tax revenues institutions are controlled by the Minister of Finance; concerns about financing the deficit compel the government to find revenues before it spends, hence changes in real and per capita real taxes mildly cause changes in real and per capita real expenditures, respectively.