THE IMPACT OF FISCAL POLICY ON ECONOMIC GROWTH
Keywords:
Fiscal policy, economic growth, government expenditure, taxation, public debt, fiscal sustainability.Abstract
Fiscal policy, encompassing government spending and taxation, is a critical tool for influencing economic growth. This study examines the relationship between fiscal policy and economic growth by analyzing its theoretical and empirical dimensions. The paper reviews existing literature to identify how government expenditure and tax policies affect economic performance, employing a quantitative methodology to assess data from selected economies. Results indicate that fiscal policies designed to stimulate investment and consumption positively impact economic growth, while excessive public debt can dampen growth potential. Policy suggestions are provided to optimize fiscal strategies for sustainable growth.
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