Evaluating the Effectiveness of Fiscal Policy in Promoting Inclusive Economic Growth in Indonesia
Keywords:
fiscal policy, inclusive economic growth, poverty, inequality, indonesiaAbstract
Fiscal policy plays an important role in supporting economic growth while reducing poverty, inequality, and regional disparities in Indonesia. This article aims to evaluate the effectiveness of fiscal policy in promoting inclusive economic growth through government expenditure, taxation, social protection, and fiscal decentralization. A literature review method was used to examine recent studies on fiscal policy and inclusive growth in Indonesia. The findings indicate that fiscal policy can contribute to poverty reduction and economic development, particularly through education, health, infrastructure, and social spending. However, its effectiveness remains influenced by regional disparities, the quality of public expenditure, fiscal capacity, and the targeting of social programs. Therefore, strengthening fiscal management and improving the distribution and quality of government spending are important for achieving more inclusive economic growth in Indonesia.
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