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Analysing the Influence of Fiscal Policy on Economic Development: A Global Perspective

Author : Dr. Rajkumar Nagarwal

Abstract :

This research paper examines the influence of fiscal policy on economic development from a global perspective. Drawing on empirical evidence, theoretical frameworks, and case studies, the analysis explores the impact of government expenditure, taxation, and budget deficits on key economic variables such as GDP growth, unemployment, and poverty rates. The findings reveal significant associations between fiscal policy indicators and economic development outcomes, with higher levels of government spending and taxation generally contributing positively to growth and welfare, while larger budget deficits exerting negative effects. Policy implications include the importance of strategic public investments, revenue mobilization, and fiscal consolidation measures in promoting sustainable development. Case studies from countries such as South Korea, Brazil, and Norway illustrate diverse approaches to fiscal policy and their implications for economic development. By adopting evidence-based policy approaches and fostering international cooperation, policymakers can harness the potential of fiscal policy to create a more equitable, resilient, and prosperous future for all.

Keywords :

Fiscal policy, economic development, government expenditure, taxation, budget deficits, public investment, revenue mobilization, fiscal consolidation, case studies, global perspective