Assessing the nexus between fiscal policy, COVID-19, and economic growth.
Environ Sci Pollut Res Int
; 29(43): 65289-65303, 2022 Sep.
Article
in English
| MEDLINE | ID: covidwho-1813813
ABSTRACT
The COVID-19 issue deteriorated South Africa's already dire economic situation, exacerbated by years of considerable debt increase. The COVID-19 pandemic has disrupted trade to such an extent that some enterprises are barely working at a quarter of their potential. Furthermore, economic agents delay economic decisions while waiting to see how the crisis develops. According to some economists, increased government expenditure will raise GDP enough to keep the country's debt-to-GDP ratio steady and restore fiscal sustainability. We use a panel data model to estimate a fiscal reaction function, which we then apply to historical data to assess the government's prior efforts to maintain or restore budgetary sustainability. We calculate the impact fiscal balance, government expenditure, interest rate, and revenue changes that the government will have to make to restore the country's fiscal stability due to the financial impact of the COVID-19 issue.The findings show that fiscal balance and tax revinue have a significant impact on the economics growth, while government expenditure and corruption reduce the growth of the country.
Keywords
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Main subject:
Fiscal Policy
/
COVID-19
Type of study:
Observational study
Limits:
Humans
Language:
English
Journal:
Environ Sci Pollut Res Int
Journal subject:
Environmental Health
/
Toxicology
Year:
2022
Document Type:
Article
Affiliation country:
S11356-022-20358-z
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