Answer: If government loots the Money it will affect the economy badly.
If government invest the money on national growth, the economy will grow.
Explanation: when money bugdeted for some particular project is being squandered by the government, there is a slow or low rate of economy increase because, some money will be put in to fight corruption, and some will feel lazy working and would want to join bad gang.
But if money is deposited into the right channel, everything moves forward , and there is low or no stunted economy growth.