The Role of Fiscal Policy in Supporting Sustainable Economic Growth
DOI:
https://doi.org/10.58812/wsjee.v3i04.2431Keywords:
Fiscal Policy, Sustainable Economic Growth, Green Investments, Carbon Taxation, Sustainable Development Goals (SDGs)Abstract
This paper explores the role of fiscal policy in promoting sustainable economic growth through a comprehensive literature review. With increasing global concerns regarding climate change, resource depletion, and inequality, governments are increasingly tasked with creating fiscal policies that balance economic growth with environmental protection and social equity. The study synthesizes key findings from various scholarly articles, focusing on fiscal tools such as green public investment, carbon taxation, and progressive taxation. These tools are evaluated for their effectiveness in driving sustainable economic development while supporting the United Nations Sustainable Development Goals (SDGs). The literature suggests that while fiscal policy can be a powerful driver for sustainability, challenges such as short-term growth pressures, political constraints, and the need for global coordination must be addressed. The study provides recommendations for policymakers, including the need for long-term, consistent fiscal policies that prioritize green investments, social equity, and international cooperation to achieve a sustainable global economy.
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