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This paper uses the analytical framework of Devarajan, et al. (1994) to determine which components of government expenditure in Barbados are growth inducing and which are growth retarding for a given level of government expenditure. The empirical model used in this study is based on the optimizing framework developed by Devarajan. The results indicate there is a positive and statistically significant relationship between economic growth and capital, agriculture, transport, health and housing expenditure, respectively. By contrast, the relationship between the current component of public expenditure and economic growth is negative. The empirical model is discussed with the data, empirical methodology and the results and conclusions given in the final section.