Balancing Economic Growth and Fiscal Policy for Equitable Welfare and Sustainable National Stability

Abstract

Economic growth plays a crucial role in enhancing societal welfare through job creation, income generation, and improved public service delivery. However, economic expansion does not always guarantee equitable welfare distribution, as its benefits often remain concentrated among specific social groups. This study analyzes the relationship between economic growth, social welfare, income inequality, and fiscal policy through a historical approach. Based on recent literature, stable and inclusive economic growth can strengthen national stability when supported by equitable fiscal policies oriented toward income redistribution. Fiscal policy serves not only as an instrument for macroeconomic management but also as a mechanism to ensure social justice and reduce inequality. The findings emphasize that the interaction between growth and distribution is essential in achieving sustainable national welfare. When economic progress is aligned with fiscal inclusivity and institutional transparency, it fosters long-term stability and broad-based prosperity. Therefore, this study concludes that balancing economic expansion and equitable redistribution is the key foundation for inclusive and sustainable development.