Özet:

The relationship between public expenditure and economic growth has been a long-term topic of discussion in economic literature. The causal relationship between public spending and economic growth is theoretically explained by two views. These views are the views of A. Wagner and J. M. Keynes. According to the Wagner Act, the direction of the causality relationship is from economic growth to public spending, and the growth of economic growth will lead to an increase in the total public spending by increasing and changing social needs, and increasing the necessary public spending pen. The Keynes Hypothesis states that the increase in public spending will bring economic growth, and that the direction of the causal relationship between public spending and economic growth is from public spending to economic growth. In this study, the development of public expenditure in the Kazakhstan economy in the period 1991-2015 was assessed in the framework of the Wagner Law and Keynes Hypothesis, the relationship between public expenditure and economic growth. Analysis using the Distributed Auto Regressive Model (NARDL) found that the Wagner Act for Kazakhstan was confirmed. One of the topics that is important as a policy proposal in the work framework is that the public spending will be divided into which areas. Considering that the production based on natural resources, such as oil and natural gas, has a significant part of the total production, the possibility of developing the disease in the Netherlands and the middle-income trap is high. When taking this into account, the areas where public spending will be carried out should be properly determined. Especially when the economic structure of today is an information economy, the resources must be transferred to the relevant areas in this framework. Therefore, more resources should be transferred to R&D, education and information-communication technologies.