This thesis investigates how expenditures of the central government of Sweden have affected economic growth during a period with significant increases in central government expenditures throughout the western part of the world. The expenditures of the central government are divided into three main areas, consumption, investments and transfers. Rate of economic growth is regressed against the central government variables together with private investment, private consumption and interest rates. All the estimated coefficients had their expected signs and three of them were statistically significant on at least a five percent significance level. Results suggest that according to growth theory the government of Sweden spend too much and might inhibit economic growth.