ObjectivesThe main objective of the study is to find out the impact of budget deficit on economic growth. The secondary objectives are:- To know the trend of budget deficit and economic growth- To know the relationship between budget deficit and economic growth.- To know the average difference between the levels of economic growth over a given period- To know know the average difference between the levels of fiscal deficits over a given periodH1: There is a significant impact of Budget deficit and economic growthH2: There is a significant relationship between the budget deficit and economic growthH3: There is a significant average difference between the levels of economic growth over time periodsH4: There is a significant average difference between fiscal deficit levels over time periodsMethodologyData collectionSecondary data collected from the Reserve Bank of India reports of India was used in this study . In addition, textbooks, journals and magazines on economic perspective were used for this study. Example: This study was conducted from the perspective of India, particularly on fiscal deficit and economic growth. Data on fiscal deficit and economic growth from 1970 to 2010 were collected for the study. Method of Data AnalysisVarious statistical methods were used to compare the data. Descriptive statistics used to test sample characteristics. A time series analysis was also carried out to identify trends over the past forty years. Inferential statistics involves drawing conclusions about a population based only on sample data. It includes regression analysis, correlation analysis and one-way ANOVAs on independent samples (f-test). The regression analysis is......middle of document......c growth is contributed significantly by other factors. A Durbin-Watson close to 2.0 is consistent with no serial correlation, while a number closer to 0 means there is likely a serial correlation. In our study, DW has a value of 1.46, which is closer to 2.0. There is therefore no serial correlation between the variables used in this study. Therefore, H2 is also rejected. One-way ANOVA test on independent sample. The one-way ANOVA test can be used to find out the significant mean difference in economic growth levels and budget deficits between periods in Sri Lanka's economic perspective. For this reason, we classified the periods in the four segments as the period between 1970 and 1979; period between 1980-1989; period between 1990-1999; period between 2000 and 2010. Period in relation to economic growth Table n° 05: One-way Anova test for independent sample