Topic: Evaluation of the effect of Umurenge SACCO program on the GDP growth rate

Differently, several researches argue that government expenditures in its sectors of government affect positively and negatively, in the long-run and in the short-run, the growth in the economy. [...] On the expenditure side, the Government of Rwanda intends to continue fiscal stimulus in the short-term and fast track economic recovery by allowing a gradual fiscal consolidation program while observing the regresses of economic impact of the pandemic. [...] Keynesian models of economic activity also include a multiplier effect; that is, output changes by some multiple of the increase or decrease in spending that caused the change (IMF, 2014) There have been two periods of intense work on growth theory, the first in the late 1950s and the 1960s and the second 30 years later, in the late 1980s and early 1990s. [...] (Dornbush, Fischer, & Startz, 2014) Whether the income is the function of capital and the governments use to spend in capital, it means that, government expenditure may contribute to the economic growth, even if at the steady state the government do not spend more in capital but any time the government may invest in capital and operating expenditures. [...] A policy of budgetary expansion must be undertaken during recession period to rise the aggregate demand in the economy therefore, boosting the gross domestic product, the employment increases, revenues and benefits of the firms rise, and this would result into a situation that the companies hiring more workers to produce the goods and services needed by the government (BC CAMPUS , 2021); The Keyne.