MACROECONOMIC FACTORS AND FISCAL POLICY ISSUES IN ENSURING STATE BUDGET SUSTAINABILITY

Abstract

State budget sustainability is one of the fundamental prerequisites for maintaining macroeconomic stability, promoting sustainable economic growth, and ensuring effective public administration. In the context of increasing global economic uncertainty, governments face significant challenges in balancing fiscal discipline with socio-economic development objectives. This study examines the impact of macroeconomic factors on budget sustainability and analyzes the role of fiscal and tax policies in strengthening the resilience of public finances. The research explores the interrelationship between economic growth, inflation, public debt, tax revenues, budget deficits, and government expenditures. Special attention is paid to the effectiveness of fiscal policy instruments in mitigating fiscal risks and maintaining long-term budgetary equilibrium. The findings suggest that prudent fiscal management, diversification of revenue sources, enhancement of tax administration, and countercyclical fiscal policies contribute significantly to improving budget sustainability. The study concludes that an integrated approach combining macroeconomic stability and effective fiscal governance is essential for ensuring sustainable public finance management in developing economies.