Fiscal Policy and Economic Stability in Developing Economies: A Case Study of Egypt

This research seeks to delve into the indispensable role played by fiscal policy in establishing and sustaining both economic stability and inclusive growth in developing economies, and the case of study is Egypt. As inequalities between the many global economies grow, so have fiscal interventions become a way for governments to make certain that everyone in a given economy has access to all resources equally and construct a long-term balance in macroeconomics. This paper seeks to analyze the channel through which fiscal instruments can increase growth, reduce poverty, and correct structural imbalances- through taxation, government expenditure, and public investment. It employs an extensive review of the existing literature and of aggregate macroeconomic data to assess the way fiscal policy frameworks have evolved and the effects they have had on stabilization.
Egypt also shows how these fiscal reforms are used in real terms in the post-2016 transformation in controlling deficits, reforming subsidies, managing debts, and being socially protective. This study identifies the channels through which fiscal policy impacts labor markets, physical and human capitals and productivity. It leads to policy recommendations for integrated efficient fiscal expenditure, sustainable public debt reduction, and inclusive economic outcomes. In the scope of subsequent evidence provided, the current research has, underpinning, contributed to a formative comprehension of the fiscal facet as a stimulus for stability and inclusive growth in emerging and developing economies.