Digital Citizenship Education and Students’ Critical Thinking Skills in the Era of Artificial Intelligence

Abstract

Fiscal policy plays a central role in helping developing economies maintain stability, respond to economic shocks, and improve household welfare. This article aims to examine the role of fiscal policy in strengthening economic resilience and improving welfare in developing economies. A literature review method was used to examine recent research and policy reports concerning fiscal management, social protection, public investment, climate resilience, and macroeconomic stability. The findings indicate that prudent fiscal policy can create buffers against economic shocks while supporting essential public services, productive investment, and social protection. However, developing economies continue to face constraints related to debt burdens, limited fiscal space, weak revenue systems, and vulnerability to climate and external shocks. Therefore, effective fiscal policy requires stronger revenue mobilization, better-targeted social protection, productive public investment, and sustainable fiscal management to support both resilience and long-term improvements in welfare.