Many authors have examined the impact of government spending on economic growth. This study uses the ordinary least squares technique to test the impact of public budget spending on two main components: investment spending on development and current spending on the economy of the Republic of Moldova for the period 2015-2021. Empirical results show that the state budget expenditures of the Republic of Moldova have a positive impact on the economy, however, each main component has a different impact. Current spending has a significant positive impact on the economy, although there is no evidence to support the relationship between development investment spending and economic growth. The Moldovan government should restructure the state budget in the direction of prioritizing current spending on humanitarian and social assistance, reducing public administration spending, allocating investment capital from the state budget to key and large-scale projects, avoiding dispersion of investments, and crowding out private investments in order to increase the positive impact on economy. State budget expenditures must be restructured.