Indian Journal of Economics, No. 401, Vol. CI (Part-II), October 2020: 215-225 Government Expenditure, Revenues and Economic Growth in Jammu and Kashmir (India) M. K. Agarwal * Mohd. Yousuf Malik ** Abstract The present paper is an attempt to derive the relationship between the fiscal policy variables, like government revenues and government expenditures with the economic growth. The selected time frame of the paper is long enough for measuring the association between the variables in long run as well as short run. Over the selected period of study, we found from data analysis that the finances of J&K have altered from revenue account deficit to surplus and from high fiscal deficit to very low fiscal deficit. The growth rate of the revenues has been greater than that of government expenditures. In the short run, we have found that the government has a comparative advantage in making expenditures which Granger Cause the revenue generation. In the second section of this paper, the test statistics have supported the expansionary fiscal policy, which signifies that increasing the public expenditure is cause the budget deficit to increase in the short run. However, this will help in the long run as the increasing government spending is proving to be the speed boosters for the economic growth in Jammu and Kashmir in the long run which is in line with Keynes idea of expenditure led growth. This further strengthens the case of more focus on expenditure oriented growth of Jammu and Kashmir. * Professor, Department of Economics, University of Lucknow, Lucknow-226007. E-mail: mk.agrawal.in@gmail.com ** Research Scholar, Department of Economics, University of Lucknow-226007; India. E-mail: maliksbeta@gmail.com