Public Debt, Taxation and Economic Productivity: A Financial Assessment of Government Revenue Strategies and Macroeconomic Outcomes

Abstract

This research paper delves into the complex relationship between public debt, taxation, and economic productivity, aiming to assess how government revenue strategies impact macroeconomic outcomes comprehensively. Hence, the study employs a mixed analysis method to provide quantitative and qualitative data on fiscal policies. The quantitative analysis employs regression analysis to analyze how public debt and taxation impact economic growth using historical data from different countries and important factors like growth rate, public debt, GDP ratio, and tax rates, among others. This approach makes it easier to identify correlations and trends that exist between the changes in taxation and debt levels, productivity, and overall economic growth. The nonnumerical supplement to this assessment is the qualitative part, where the author looks at case studies of different fiscal policy nations – high-taxing, low-taxing nations, and countries with stable and high public debt. Furthermore, the views of actual economists, policymakers, and tax experts help to offer practical insight into these examples. Altogether, these methodologies make it possible for the paper to offer specific policy recommendations that can guide policymakers in the areas of taxation and debt management so that the aims of raising economic productivity, stability, and sustainable growth in the long term can be achieved.