In this study we try to find the relationship between political structures and their spending behavior. We want to investigate whether there exists any difference in spending behavior under two different forms of government (Democratic and Autocratic). Our main objective is to examine which government spends more on public goods (education and health) and defense spending. Our sample consists of south Asian countries, while the data from 1990 to 2017 has been utilized. By using a fixed effect model we conclude that a democratic form of government spends more on public goods while an autocratic form of government spends more on defense. Also when per capita income and tax revenue of a country increases its increase spending on public good, besides when Internal and External conflict and Military Involvement in Politics of a Country increases they increase spending on defense. The policy recommendation for the South Asian country is that these countries should promote democratic norm because when a country become more democratic its spends more on public goods and less on defense. Hence, from spending more on public goods a country will become more developed. Supervisor:- Dr. Karim Khan