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Fiscal Policy
FISCAL POLICY AND GROWTH

Fiscal Policy

Fiscal policy, used by governments to mobilize tax revenue and manage spending, is central to macroeconomic stability, growth, and job creation.

Collecting enough domestic revenue is key for countries to finance development priorities. Efficient government spending is crucial to creating the fiscal space that underpins long-term development. Public investment in human capital—through education, health, and social protection, and infrastructure—sustains job creation.

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OUR APPROACH TO
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FISCAL POLICY
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RESULTS & IMPACT
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ON FISCAL POLICY
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74%
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of low-income countries have tax-to-GDP ratios below 15%, a level associated with having enough resources to invest in human capital and infrastructure.
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US $2.8 billion
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World Bank’s commitments to help countries boost Domestic Resource Mobilization
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20 countries
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with tax revenues-to-GDP below 15% that have increased collection while improving fairness and equity with World Bank support in fiscal year 2025 alone.
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Research & Publications
More Research & Publications
https://openknowledge.worldbank.org/search?query=Debt&f.topic=Macroeconomics%20and%20Economic%20Growth,equals&spc.page=1
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REPORT
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Hooked on Subsidies - The Case for Reform

Subsidies are fiscal policy tools that can unlock benefits or create inefficiencies depending on their design and implementation.

This Report provides practical guidance for policy makers on various aspects of subsidies, enabling a reform path to improve subsidy outcomes.

https://documents1.worldbank.org/curated/en/099030926153540787/pdf/P181180-b901cab6-a660-44d6-9493-654669be06d3.pdf
Read Full Report
https://documents1.worldbank.org/curated/en/099030926153540787/pdf/P181180-b901cab6-a660-44d6-9493-654669be06d3.pdf
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REPORT
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Public Finance Reviews

Public Finance Reviews (PFRs) are a core World Bank tool for analyzing the efficiency and effectiveness of a country’s public expenditure and for strengthening budget institutions.

They also help countries build capacity to mobilize more domestic revenues in a way that enhances growth and equity. PFRs underpin World Bank engagements with governments and stakeholders and inform our lending.

https://www.worldbank.org/en/topic/fiscalpolicy/brief/public-finance-reviews
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https://www.worldbank.org/en/topic/fiscalpolicy/brief/public-finance-reviews
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MORE ON
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FISCAL POLICY
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Fiscal Policy and Growth

Poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies. The World Bank supports countries in the design and implementation of economic reforms to strengthen macroeconomic stability.

Explore our Fiscal Policy and Growth Investments

EXPLORE FISCAL POLICY AND GROWTH FOCUS AREAS
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