The Strategic Role of Fiscal Policy in Addressing Economic Recession and Achieving Sustainable Recovery

Abstract

This study aims to comprehensively examine the role of fiscal policy in addressing economic recession and supporting sustainable economic recovery using a Systematic Literature Review approach. This study collects and analyzes various indexed scientific publications in the last five years that discuss the effectiveness of fiscal policy on macroeconomic stability, governance, and sustainable development. The results show that fiscal policy plays an important role in strengthening economic stability, increasing people's purchasing power, and expanding employment opportunities through targeted economic stimulus. The principles of good governance and fiscal decentralization have been proven to increase policy effectiveness through transparency, accountability, and public participation in budget management. In addition, the integration of environmental aspects into green fiscal policy strengthens the direction of environmentally-friendly sustainable development. This study confirms that the success of fiscal policy is highly dependent on good governance and strong synergy between fiscal and monetary policies to achieve inclusive, resilient, and sustainable economic growth.