Taxation as a Fiscal Policy Instrument for Achieving Inclusive and Sustainable National Development

Abstract

Taxation plays a crucial role as the primary source of state revenue and as a key fiscal policy instrument supporting national development. Through effective tax management, the government can finance various public programs, infrastructure projects, and socio-economic policies aimed at reducing inequality and maintaining economic stability. However, challenges such as low taxpayer compliance, regulatory complexity, and weak law enforcement often hinder the optimal function of the taxation system. This study aims to examine the strategic role of taxation in national development using a library research approach based on recent scholarly literature. The findings indicate that strengthening tax regulations, enhancing fiscal transparency, and improving tax literacy are essential factors in increasing the effectiveness of the tax system. Moreover, the integration of fiscal policies oriented toward equity and sustainability is a fundamental element in achieving inclusive economic prosperity. In this context, taxation is not only a fiscal mechanism for revenue generation but also a developmental instrument that promotes fairness, accountability, and long-term national resilience.