An attempt has been made in this write-up to examine the linkage between aggregate public spending and growth of the economy in Odisha during the study period 1980-2018. Time series technique has been employed towards this end. It is observed that both the series are non-stationary at level but becomes stationary after first difference. From the estimated cointegrating equation, it is found that there exists a long run relationship between Aggregate Expenditure and Gross State Domestic Product. The Granger Causality Test, which exposes the short-term relationship between any two variables, reveals that causality runs from Aggregate Expenditure to Gross State Domestic Product.

JEL Classification: C32, H72, O15

KEY WORDS: Aggregate Expenditure, Time Series Analysis, Granger Causality