The primary function of the government in any economy includes security and provision of public goods for the economy, which will make the government expend some money on behalf of the economy, which is expected to lead to economic growth and likely lead to inflation; this is because higher spending leads to increase in inflation. This study empirically determines the influence of government spending on inflation and economic growth among selected Sub-Sahara countries using panel study. Result obtained from the study rejected the null hypothesis of random effect is the efficient and appropriate model and accept the alternative hypothesis of fixed effect is the efficient and appropriate model for the study. Causality tests revealed that there is no causal relationship between inflation and government expenditure variables. There is a unidirectional causality from government expenditure to economic growth and finally, there is a unidirectional causality from economic growth to inflation. Conclusively, government expenditure significantly and positively influence economic growth rate for all the countries under observation while there is an inverse relationship between government expenditure and inflation. The study therefore recommends that economic managers of the sub-Sahara countries should ensure adequate and efficient policy towards their respective government expenditure with the aim of expanding it, which is expected to lead to continual economic growth.

Keywords: Government expenditure, Neo-classical model, Economic growth, SubSaharan Africa.