Fiscal Policy Measures Research Articles

The Dynamics of Fiscal Policy Measures on Manufacturing Sector Growth: Evidence from Nigerian Economy

The Dynamics of Fiscal Policy Measures on Manufacturing Sector Growth: Evidence from Nigerian Economy

The Government's Use of Fiscal Policy Measures: Its Role on Economic Stability Since the Outbreak of the Pandemic

The Government's Use of Fiscal Policy Measures: Its Role on Economic Stability Since the Outbreak of the Pandemic

Relative Effectiveness of Monetary and Fiscal Policy Measures on the Economic Growth of Nepal

This study assesses the long run and causal relationship of various monetary and fiscal policy measures with the economic growth of Nepal. Annual time series data from the fiscal year 1976/77 to 2021/22 are used and analyzed employing econometric method of cointegration and Vector Error Correction Model (VECM) for the assessment and draw inferences applying r programming. All the variables exhibit stationarity at first order difference and are co-integrated. In the long run, monetary policy measures, broad money supply has the negative relation but interest rate and exchange rate have the positive relation with the economic growth. Fiscal policy measures under consideration total revenue, total expenditure and total trade are negatively related with the long run economic growth. However, neither the fiscal nor the monetary policy measures indicate the significant relationship with the economic growth in short run. The negative and significant coefficient of Error Correction Term (ECT) suggests the convergence of variables towards long term equilibrium. The cumulative sum (CUSUM) tests indicate the stability of the coefficients in the model, and the diagnostic tests reveal the absence of serial correlation and heteroscedasticity in the model. Finally, Granger causality test shows the existence of causal relationship between the independent and dependent variables. This study concludes the existence of long run relationship of monetary and fiscal policy measures with the economic growth in Nepal and monetary policy measures appear to be relatively effective than that of fiscal policy measures in stimulating the economic growth of Nepal.

DEVELOPMENT OF INFORMATION SUPPORT FOR FISCAL RISK MANAGEMENT WITHIN CRISES

Crisis phenomena, such as economic downturns, health emergencies and geopolitical conflicts, had a significant impact on the transparency of information support for public financial management processes and the development of digitalization of the economy.The objective of the study is to assess the current state of information support and transparency of the management of fiscal risks caused by state-owned enterprises' activities under uncertainty.Within the study, the existing international approaches to identifying and assessing fiscal risks are analyzed; the areas for improving information support for managing fiscal risks caused by the activities of state-owned enterprises in emergency situations are identified; the impact of digital finance development on mitigating fiscal risks caused by emergencies is assessed. Proposals to increase the transparency of public finances and create additional revenues to the state budget by the development of innovative technologies are substantiated.Implementation of fiscal and monetary policy measures to mitigate the impact of COVID-19 and ensure sustainable post-pandemic recovery requires relevant financial information reflecting the country's financial position. A reliable source of such information is public financial and budgetary statements prepared by IPSAS and on an accrual basis. Given the negative impact of uncertainty caused by the coronavirus pandemic and war on the activities of state-owned enterprises, an important tool for improving the efficiency of fiscal risk management is the unification of approaches to establishing indicators for assessing relevant risks and providing information for their calculation. In response to lockdowns and social distancing measures during crises, citizens have increasingly relied on digital channels to access government services, pay taxes, and receive financial support. This has necessitated improved digital infrastructure and service delivery mechanisms.

A CHRONOLOGICAL ANALYSIS OF INFLATION DYNAMICS IN KENYA

This paper undertakes an exploratory examination of inflation dynamics in Kenya between 1970 and 2021, employing a descriptive research design and secondary data from various sources, coupled with qualitative analysis of the literature. The paper comprehensively analyzes the impact of diverse policy changes, including monetary and fiscal policies. Overall, this paper provides a beneficial resource for anyone interested in comprehending the intricacies of inflation dynamics in Kenya and the relevant measures employed to manage rising prices. The government implemented various measures to fight inflation over the years, including tight monetary policy and fiscal policy measures. The Central Bank of Kenya implemented various monetary policies to control inflation, such as increasing interest rates and tightening credit. Factors such as rising food and fuel prices, droughts, and political instability have driven inflation in Kenya over the years. Despite Kenya's implementation of several reforms aiming to promote stable inflation over time, challenges regarding inflation persist. To achieve long-term economic growth and stability, it may be wise for the government to consider implementing policies that promote fiscal discipline, strengthen institutional frameworks, and encourage private sector development. By doing so, the government can ensure sustainable economic growth and stability.

Impact of Fiscal Policy Measures on the Control of Inflation in Nigeria

Fiscal policy is one of the public sector tools used in the pursuit of these macro-economic goals. Fiscal policy could then be said to be an embodiment of all government plans aimed at achieving desired macro-economic goals, without directly altering the level of money supply. Nigeria, like most other Third World Countries, is committed to the achievement of a range of economic objectives such as high level of employment, rapid economic development, equitable distributions as well as reasonable price stability. However, the problem of rising prices has been particularly acute in recent years and has not responded to monetary and fiscal measures. In particular, it is becoming increasingly evident that we cannot count on maintaining the desirable level of economic development and simultaneously achieving reasonable price stability (Tomori, S., 1982). It is in realization of this fact that emphasis is on highlighting the various fiscal policy measures with respect to the problem of inflation. Furthermore, a sound study of the effects of various fiscal policy measures on the control of inflation is necessary in the bid to determine the appropriate policy mix required for dealing with the problem.

Fiscal and Monetary Measures in Achieving Green Ecology: Evidence from Nigeria

Abstract Research background In light of the apparent density of the carbon output in the ecosystems of emerging regions, the United Nations has established a manual that puts an emphasis on carbon taxes as one of the quick fixes to environmental uncleanness in evolving states. Purpose The purpose of this research is to look into the impact of monetary and fiscal policy measures on reducing carbon emissions in the ecosystems of Nigeria. Research methodology The study employs the Autoregressive Distributed Lag (ARDL) co-integration technique or the bound co-integration technique to confirm the existence of long and short term nexus and the influence of selected financial instruments on pollutant reduction. The study spans 1991 to 2021 and relies on World Bank Development Indicators data on inflation and CO2 discharges in millions of metric tons. The statistics on tax earnings is derived from the Central Tax Authority in billions of national currency, but the figures on the state’s outlay and broad money supply are generated from the database of the Apex Bank in the country. Result According to the analysis, financial instruments are not yet being directed toward reducing air pollution and environmental devastation in the country. Further investigation reveals that tax revenue gathering is positively irrelevant, but CO2 has a strong positive effect on its reduction at lag 1, implying that a more eco-friendly financial strategy is required to combat environmental hazards in Nigeria. Novelty A Green financial system is a big issue of contention in the global public discussion about rising temperatures. Presently, there are few studies on the management of pollution using financial instruments in emerging regions. This study will serve as one of the leading investigations to align with the United Nations goal to restore our biodiversity through green fiscal and monetary policies. The study strongly suggests that the Nigerian government should pursue green fiscal and monetary mechanisms that include: issuance of green bonds; potential and cost-effective green payment plans, carbon taxation, and ecologically responsible national budgets and investment opportunities.

Financing sustainable environment in the wake of global warming for E7 economies: heterogeneous analyses based on NARDL and quantile regression

ABSTRACT Financial development as a viable tool in nation-building and economic expansion is generally established in growth empirics. That notwithstanding, its roles in the drives towards environmental sustainability have received commending and reprimanding views in recent times. However, empirical study advancing the asymmetric effects of financial development from the broader view of measures seems limited and evolving. Hence, the present study investigates the positive and negative effects of financial development measured by broad money and domestic credit to the private sector on environmental sustainability (CO2 emissions and ecological footprint) in the Emerging Seven (E7) economies from 1995 to 2019. The empirical evidence considers the intervention of government policy through fiscal policy instruments (government spending and tax revenue), eco-digitalization, affluence, and population growth in a STIRPAT framework. The main analyses focus on advanced estimators such as pool mean group, mean group, dynamic fixed effects, and panel quantile regression. Feedback shows that negative shocks from financial development captured by broad money induce more surges in CO2 emissions. Similarly, the negative shocks from domestic credit to private sectors promote CO2 emissions, while the positive shocks moderate the emissions. The findings also uncover eco-digitalization as a viable tool to achieve environmental sustainability in the E7 economies. Furthermore, the measures of fiscal policy have differing impacts on environmental sustainability as evident from the positive and negative signs attributed to government expenditure and tax revenue. Moreover, affluence and population growth exacerbate CO2 emission surges. Policy insights that drive environmental sustainability are suggested based on the findings.

Barriers and interventions for healthy and climate-friendly living for vulnerable groups

Abstract Background The climate crisis constitutes the largest threat to public health in the 21st century. Against this background co -beneficial measures for climate mitigation and health promotion can offer the opportunity for necessary transformative change, especially in terms of active mobility, sustainable food systems and spatial planning. Vulnerable groups are in particular affected by health burdens and limited in their scope of action regarding climate-friendly and healthy practices, making the identification of barriers and necessary structural changes especially important for vulnerable groups. Methods Within the framework of a narrative literature review, a policy analysis, and a complementary co-production workshop with representatives of vulnerable groups have been conducted. To identify essential measures amongst the core themes mobility, food system and spatial planning, the analysis included actual barriers and necessary structural changes for more health equity and climate mitigation. Results Based on our analytical framework different measures, especially requirements in terms of infrastructure, for all three fields of action (mobility, food system, and spatial planning) are needed. At the policy level, insufficient integration of public health aspects in other policy areas is evident, in particular due to a closed silo structure of different public authorities. Conclusions To shape transformative changes toward healthy and climate-friendly living, at policy level, long-term goal-oriented thinking that goes beyond legislative and funding periods is needed in order to be able to implement structural changes. Likewise, there is a need for fiscal policy measures in the sense of a socially just and ecological transformation. Also investments in physical infrastructure (e.g. bicycle parking, low-priced offers of healthy and sustainable restaurants) are essential for a social-ecological transformation. Key messages • Healthy and climate-friendly environments for vulnerable groups are in the need for the needed transformation. • Using co-benefits between health promotion and climate mitigation measures.

Forecasting Inflation Rate in Ghana using Seasonal Autoregressive Integrated Moving Average Model with Monthly Consumer Price Index, 2012 -2022

This study aimed at modeling and forecasting the inflation rate in Ghana using a seasonal autoregressive integrated moving average model with monthly consumer price index data from January 2012 to December 2022. Using the Philip-Parron unit root test, the result showed that the time series data was stationary in its first difference, showing that the consumer price index was integrated with the first order. Also, from the seasonal graph, seasonality was observed in the data. The correlogram of ACF and PACF helped to select the appropriate lag for p and q. Box-Jenkins procedure was applied to identify the appropriate model that fit the data. From the Box-Jenkins procedure, the SARIMA(1,1, 1)(1,1,1)12 model was identified as the best model to forecast the inflation rate. From the forecast graph, inflation will begin to rise in the second quarter of 2023. However, the forecast from January to March,, 2023 inflation rates were 54.9, 56.5 and 50.2, respectively. Therefore, it is highly likely that Ghanaian inflation will be rising in the subsequent months based on the 2012 to 2022 Consumer Price Index. The appropriate authorities should put monetary and fiscal policy measures in place to moderate the envisaged rise in inflation.

FISCAL POLICY OF UKRAINE AS THE FACTOR OF THE SUSTAINABILE DEVELOPMENT OF THE TERRITORIES IN CONDITIONS OF MARTIAL LAW

It proves that the fiscal policy in the war conditions needs economic diversification with the help of the use of existing resources optimization and the search of uninvolved ones as well. The aim of the research is to deeply analyze the theoretical-methodological bases of Ukrainian fiscal policy formulation and fulfillment in conditions of martial law and its impact on the financial system of the government. Government’s revenue (taxes) and government’s expenditure are the main instruments of fiscal policy. High uncertainty in condition of full-scale war led to the reducing of the effectiveness of market instruments of fiscal policy and made it impossible in the traditional format.
 It defines that instruments of fiscal policy helped to provide some measures for designing expansionary fiscal policy in conditions of martial law. Grant funds of international partners as well as non-tax revenue at the expense of voluntary transfers from citizens, enterprises, and organizations to support Ukraine have become the ultimate source of government’s revenue from the beginning of the war. The search of instruments for financing (ensuring defense capability and security of the country; social expenses, increasing the monetary support of the military, debt service expenses) has become the key of fiscal policy.
 It explains that negative opening balance of consolidated budget of Ukraine targeted at cyclical economy position of the country proves the sharp softening of fiscal policy. The probation of such kind of fiscal policy was due to the intense growth of the budgetary expenditures on providing defense capabilities of the country and incentives to support economy in conditions of martial law.
 It proves that the abrupt deficit expansion of consolidated budget is the justified countercyclical measure of fiscal policy in conditions of martial law. The softening of fiscal policy in the country has mainly become possible because of quite balanced fiscal policy of past years and considerable international support as well.

The dynamic influence of energy consumption, fiscal policy and green innovation on environmental degradation in BRICST economies

The global consensus on overcoming climate change and environmental sustainability has increased the urgency towards formulating stringent environmental and fiscal policy instruments in achieve environmental sustainability. The current study extends policy deliberations by studying how energy transition and fiscal policy measures impact the ecological footprint of BRICST economies from 1995 to 2021. Our findings from Driscoll-Kraay standard errors, FMOLS, DOLS, and method of moments quantile regression identify that energy transition, renewable energy, taxation revenues and green innovation improve environmental sustainability, while non-renewable energy consumption and governmental expenditures exacerbate environmental challenges. Our econometric analysis allows us to propose that policymakers must use fiscal policy measures to introduce structural changes and foster the adoption of environmental technologies in the industrial sector. Furthermore, developing economies must broaden tax base to increase environmental spending on upgrading renewable energy infrastructure and lower ecological burden.

Macroeconomic Stability and Optimal Policy Mix

Public welfare and macroeconomic stability should be the main objectives of fiscal and monetary policy cooperation. Monetary and fiscal policy should be coordinated better to maintain sustainable economic development. To implement fiscal measures and monetary controls, a balanced budget is necessary. This study uses data from 1976 to 2022. A macroeconomic stability check uses real GDP, current account balance, exports, real effective exchange rate, broad money (M2), foreign exchange reserves, consumer price index (CPI), nominal exchange rate, government expenditures, and government tax revenue. The VAR models we use are Impulse Response Functions (IRFs) and Variance Decompositions (VDs). CMR feels a negative impact, TRY, whereas M2G, GY, and others feel a positive impact. Achieving output and price stability requires higher call money rates, more tax revenues, and reduced government spending. Output gaps should be negative.M2G and CABY are negatively correlated, whereas CABY and CMR are positively correlated. If there is a negative output gap, monetary aggregates and taxes conflict with price and production stability; however, policy should aim to increase the current account balance. We recommend strict fiscal and monetary policy measures to stabilize output and limit inflation whenever there is a positive output gap. In addition to strengthening trade and foreign exchange reserves, reduced government spending will stabilize exchange rates; however, increasing tax revenue will counteract these benefits by strengthening the current account.

Impact of Epidemic on EmergingMarkets and Relevant Countermeasures - A Case Study of Emerging Markets in China

The new coronavirus epidemic has brought great obstacles to China's economic development. Faced with the impact of the epidemic, the Chinese government has used fiscal and monetary policies to accelerate economic recovery. This paper, through a method of literature review, explores the impact of COVID-19 on China's economy and economic recovery under policy support. The paper finds that the outbreak of the new coronavirus disease has had a significant impact on China's economy and financial markets but also brought great pressure to China's enterprise financing. In an environment of weak domestic and foreign demand and increased international environmental uncertainty, the outbreak of the new coronavirus has intensified the pressure of the economic downturn and added new uncertainty to economic development. Many people's income levels have declined. Apparel, shoes and hats, gold and silver jewelry industry consumption fell sharply. The epidemic has a great impact on the consumption part of the economy, so it is a good choice to develop an economy based on exports. With the help of fiscal policy, monetary policy, and stimulus measures, China's exports have grown rapidly and PPI levels have risen, making it the most foreign-attractive country in emerging economies.

What kind of fiscal policies and natural resources efficiency promotes green economic growth? Evidence from regression analysis

The promotion of green economic development and sustainability has received increasing attention throughout the world in recent years. Regarding global emission reduction efforts, China plays a pivotal role as one of the world's biggest economies and a significant player. Using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) model, analyzes how government spending and natural resource efficiency have affected green economic development in China from 1990 to 2020. We conduct a regression study to understand better how fiscal policy measures and indices of natural resource efficiency might work together to foster environmentally responsible economic development. The findings show that green economic development is significantly correlated with key interventions in fiscal policy and natural resource efficiency measures. These results light the efficacy of certain fiscal policies and resource management practices in promoting sustainable development and mitigating the environmental impact of economic activities in China.

Вуглецеві кредити та офсети в контексті державної політики сталого розвитку

Introduction. Overcoming the coronavirus crisis made it possible to return the focus of the authorities to global issues of sustainable recovery, which are directly related to the so-called green course and the transition to a low-carbon economy. At the international level, the Intergovernmental Panel on Climate Change (IPCC) has implemented a number of initiatives that determine the importance of reducing greenhouse gas emissions on the planet, including carbon dioxide (CO2). Worthy of special attention is the fact that it is necessary to implement appropriate strategies of state support and the involvement of progressive financial instruments in order to develop the priorities of the low-carbon economy. Problem Statement. Assessment of prospects for the development of carbon credits and offsets in the context of expanding the range of monetary and fiscal instruments of state regulation of sustainable development. Purpose. To substantiate the essential characteristics of carbon credits and offsets with the aim of providing proposals for the use of foreign experience to create an effective state mechanism designed to stimulate their use for the reconstruction of the economy of Ukraine, namely qualitative recovery, based on maintaining the appropriate level of environmental, social and management components, stimulating the financing of relevant projects and programs. Methods. General scientific and special methods were used, in particular: scientific abstraction and epistemological (content) analysis, synthesis, induction and deduction, analogies and systematization, system-structural analysis, expert evaluation method, index method and grouping method. Results. The article examines the modern environment of sustainable development, considers the state and the potential of popularizing carbon credits and offsets on the way to sustainable development, prospects and tools for developing the relevant market. In addition, the study emphasizes the stages of formation of the carbon credits market. Emphasis is placed on the possibilities of interaction between the participants of the carbon credit market. In view of expanding the practical application of carbon credits, the differences between carbon credits and offsets are emphasized. Forecasts of the development of the global market of carbon credits and offsets were analyzed. Fiscal instruments of influence on the European market of carbon credits and offsets were considered, which made it possible to assess the applied aspects of their application, in particular for the recovery of the economy of Ukraine. Conclusions. Carbon credits are a kind of asset, namely, they make it possible to determine the rights to emit carbon gases. Instead, carbon offsets have a “passive” nature, because they are represented by units that confirm the possibility of reducing these emissions. The annual growth of the volume of carbon credits and offsets in the world determines the need to strengthen the system of state regulation of the processes that take place in the market. Accordingly, the world is integrating the tools of monetary and fiscal policy into the system of managing greenhouse gas emissions in various spheres of economy. The recovery of Ukraine's economy requires the implementation of a qualitatively new sustainable development policy. In particular, it is worth applying rather successful experience of stimulating the use of carbon credits and offsets. The pricing system and fiscal policy measures (regulation of the amount of taxation of carbon emissions) will be of decisive importance for the development of the market. This direction of research is worthy of the attention of domestic scientists and practitioners, which will contribute to the reconstruction and strengthening of the competitive positions of the national economy on international markets.

Distribution of the impact of monetary and fiscal policy instruments by technological modes and sectors of the economy

The subject of the study is the impact of monetary and fiscal policy instruments on the functioning of the structural elements of the economy, represented by sectors and technological structures. The purpose of the paper is to establish how the monetary and individual fiscal policy instruments influenced the structure of the Russian economy. The methodology consists of the “distributed control” doctrine, which modifies Tinbergen’s principle of “goals-instruments” of macroeconomic policy, since it allows to reveal the unequal power of the instrument by objects of economy, structural and empirical analysis, correlation-regression analysis, with which it is possible to show a picture of the distributed influence of monetary and fiscal policy instruments. A general algorithm of research and application of the doctrine of “distributed management” at the macroeconomic level are developed — by technological structures and economic sectors, which made it possible to obtain a picture of the distribution of the influence of monetary policy on economic objects, to identify the significance of individual fiscal policy instruments. The general result of the research is that the doctrine of “distributed management” used not only modifies the classical theory of economic policy, but also confirms that, in addition to the economic structure, the impact structure of standard monetary and fiscal policy instruments arises. The distribution of the most significant instruments of monetary and fiscal policy by technology and three sectors of the Russian economy to ensure its growth in the period 2011–2021 are obtained. It was found that the development of high-level processing and technological modes were more influenced by monetary than budgetary instruments, and the transfer of resources to the national welfare fund hindered their development. Fiscal policy measures — revenues, expenditures, budget deficit/surplus — did not have an equal impact on the development of the considered sectors of the economy. The prospect of further research is to develop a software module that includes ongoing analysis and automates calculations based on available statistics to change of monetary and fiscal policy measures in Russia aimed at developing the manufacturing sector and high-tech.

HIERARCHICAL EFFECTS OF PUBLIC HEALTH RESPONSES AND FISCAL POLICY MEASURES ON TAX MORALE OF ENTREPRENEURIAL FIRMS DURING THE COVID-19 PANDEMIC IN NIGERIA

The purpose of this paper is to examine the hierarchical effects of Public Health Responses (PHRs) and fiscal policy measures (FPMs) on the tax morale (TM) of entrepreneurial firms in Nigeria during the COVID-19 pandemic. The theoretical basis for the study is based on social contract theory (SCT) and fiscal exchange theory (FET), which oblige entrepreneurs to pay taxes to the state in return for public goods and social services. Using a cross-sectional survey design, we collected primary data from 177 professional managers of entrepreneurial firms in Nigeria using online questionnaires. The sampled firms were accessed with the support of the Lagos Chamber of Commerce. Data collected at a point in time reflecting respondents’ views on the impact of PHRs and FPMs on TM were analyzed using hierarchical regression analysis. Three estimates emerged from the hierarchical regression analyses. The first estimation suggests that the PHRs have a significant positive effect on the TM of entrepreneurial firms. The second estimate suggests that the FPMs do not have a significant positive effect on the TM of entrepreneurial firms. The third estimation found that the interactive effects of PHRs and FPMs do not have a significant positive effect on the TM of entrepreneurial firms. The study, although modest, contributes to the literature on the entrepreneurial behavior of firms and tax morals in a period of economic uncertainty. The study provides valuable insights and validates the social contract and fiscal exchange theories in the recessionary period.

The Relationship between the Budgetary Fiscal Policy and Macroeconomic Indicators, a Comparative Study of Germany-France versus Romania-Bulgaria

Abstract Fiscal-budgetary policy in the current economic context is a challenge for all EU27 governments. The literature, although consistent on this topic, still does not provide sufficient modeling-based solutions for decision-makers. The objectives of the study are to identify relevant indicators for fiscal-budgetary policy analysis, to build a related statistical database, to conceptualize a fiscal-budgetary policy efficiency model, to test and validate this model and the working hypotheses, to formulate relevant conclusions on the influence of macroeconomic indicators on fiscal-budgetary policy elements and to establish a ranking of fiscal-budgetary efficiency at the level of the four Member States in the European context. As a result, our scientific approach becomes necessary and is based on econometric research on the correlations between fiscal-budgetary policy elements and the evolution of macroeconomic indicators. The main results of the study are the conceptualization of the regional model of correlation between budgetary fiscal policy and macro indicators and the identification of the differentiated influences of macroeconomic elements on the fiscal-budgetary policy according to the level of development of the Member States. The results are useful for supranational decision-makers in setting medium- and long-term fiscal and budgetary policy measures, as well as for economic entities that can adjust their macroeconomic risk behavior and future economic development strategies based on this information.

Efficacy of Fiscal Policy in Stimulating Economic Growth During Recession in China

Fiscal policy involves decisions related to government expenditures on public goods and services, as well as the collection of revenue through taxes and other sources. The government can use fiscal policies to adjust its spending and taxation levels to stimulate or restrain economic activity, influence consumer and business behavior, and achieve desired macroeconomic outcomes. A recession is characterized by a contraction in output, income, employment, and trade, usually accompanied by a general decline in business activity and a decline in consumer spending. During recessions, when economic activity declines, policymakers often turn to fiscal policy as a tool to boost aggregate demand, create jobs, and promote recovery. The study noted that China has experienced various economic downturns and has implemented fiscal policies to address them. Like during the global financial crisis in 2008-2009, China implemented a massive fiscal stimulus package to counter the economic downturn. Structural reforms, such as improving market competition, reducing administrative burdens, and enhancing the business environment, can amplify the impact of fiscal policy measures. Combining fiscal policy with structural reforms had a more significant effect on stimulating economic growth in China. In conclusion, timely and targeted fiscal interventions can have a positive impact on economic growth during recessions. Large-scale infrastructure projects, when implemented efficiently, have the potential to boost employment, drive domestic demand, and contribute to long-term economic development. The study recommended that policymakers should carefully identify and target sectors with high multiplier effects, such as infrastructure, innovation, and technology, to maximize the impact on economic growth. To maintain long-term fiscal sustainability, China should carefully manage public debt levels and ensure responsible fiscal practices. Continuous evaluation and monitoring of fiscal policy measures are essential to assess their effectiveness and make necessary adjustments. Keywords: Fiscal Policy, Economic Growth, Recession, China