The main focus of this thesis is the link between public expenditure and its role in reducing poverty with an especial care on related expenditure management policies (initiatives) in Bangladesh. The objective of this thesis is to review and analyze the trends in government expenditure and its compositions in a Bangladesh perspective, and to develop an analytical framework for determining differential impacts of various public investments on economic growth and poverty alleviation. This study intended to examine and test two key hypotheses while trying to answer the basic research question: has public expenditure in Bangladesh successfully contributed to economic growth and poverty alleviation of the country? We did apply both qualitative judgments and quantitative estimations from a dynamic macro-econometric model and time series analysis by utilizing an Ordinary Least Square (OLS) Estimate. Since the link is complex in many aspects, this study made an attempt to utilize both analytical (qualitative) explanations and econometric analysis to untangle the nature of relationship. In the econometric analysis efforts were made to use a set of 31 years‘ time series data in order to see the impact of various components of government spending onpoverty (through real GDP, wage, and employment growth) by estimating a linear equation. Another quantitative explanation has been performed based upon the findings of a joint Public Expenditure Tracking and Quantitative Service Delivery Survey (PETS-QSDS) conducted while considering the primary education sub-sector in Bangladesh as a test case. Utilizing results of our econometric estimation we have checked the study‘s hypothesis one and found it to be partially true. We did not find any significant impact of government spending on economic growth and poverty reduction in the Bangladesh economy. We verified our second hypothesis by our findings from the PETS-QSDS survey and found true. It was revealed that widespread corruption in resource management practices, leakages of funds and/or political and bureaucratic capture coupled with a lack of adequate funds lowered significantly the welfare effects of public expenditure in Bangladesh. We found two layers of agency problem namely „between the citizens and politicians? and „between politicians and service providers? appeared in the public expenditure management hierarchy. This study was engaged to look for common trends and patterns and we also sought to gather evidences supporting our hypotheses through a variety of approaches and methods. Finally, this thesis deliberately visited various expenditure management initiatives in Bangladesh and justified their effectiveness through the prism of equity, accountability, transparency, and appropriateness. Based upon the findings of the study some policy recommendations were suggested to show the direction of future expenditure strategies in major sectors of the Bangladesh economy.