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Abstract

The research examined role of current government expenditure on inflation in the Sudan (2010-2015). The statistical analytical descriptive approach was applied. The most important objectives of the research is to illustrate the current government expenditure on the inflation in the Sudan and the state of inflation currently as well as how to overcome it by pursuing financial and monetary sound policies .The most significant hypotheses indicate that there Is a statistical progressive relationship between the current government expenditure and inflation in the Sudan. The visible increment of the current government expenditure and the depending policy on the import of goods fromthe advanced countries were behind the rates of inflation increase in the Sudan. The reform measures made by the government related to its current expenditure led to further increase in the inflation rates. But, the public expenditure which was allocated to the productive sectors and the precautionary measures taken against the wages policy led to decline in the inflation rates. The most important findings show that there is a statistical progressive relationship between the current government expenditure and inflation in the Sudan. The visible increase of public expenditure and the depending policy on the imports from the advanced countries as well as the reforms of the government expenditure led to the increasing of inflation rates. However, the public expenditure which was allotted to the productive sectors and the precautionary measures taken against the wages policy led to reduce the inflation rates. The most significant recommendations pointed out that it is necessary to adopt an effective fiscal and monetary policy to reduce the inflation rates in the Sudan. It is also to rationalize public expenditure and control the financial performance of the government in order to cut the excess of expenditure and allocate it to the productive sectors which participate in the economic development and import substitute industry to avoid the imported inflation.