Economic growth is clearly a predominant objective of public expenditure policy. Many public programs are specifically aimed at promoting sustained and equitable economic growth. Education is an important determinant of economic growth for any country. On the other hand, Government budget policy affects the long - term growth rate through decisions on priority based public spending on different sectors Education plays an important role in human capital development which is a key to scientific and technological advancement. Education is also regarded as a sustainable route to economic prosperity, it combats unemployment, confirms sound foundation of social equity, awareness and cultural vitality. It raises the productivity and efficiency of individuals and produces skilled manpower capable for leading the economy towards the path of economic development. The relationship between education and economic growth has been extensively investigated, with the theoretical and empirical models, although the question of how education affects economic growth is not yet fully resolved. One of the issues that cause controversy is that of the apparent contradictions between the effects of education on the growth of personal income and on economic growth .