How does fiscal sustainability impact economic growth?

Fiscal sustainability refers to the government's ability to maintain its current spending and revenue policies over the long term without endangering its financial stability. When a government is fiscally sustainable, it can provide essential services while maintaining manageable levels of debt. This stability in public finances can have a significant impact on economic growth by promoting investor confidence, lower interest rates, and a stable economic environment. By ensuring fiscal sustainability, governments can create a foundation for long-term growth and prosperity.

This mind map was published on 21 February 2024 and has been viewed 78 times.