Fiscal policies as an instrument for reducing social inequality

Abstract

This article analyzes the significant role of fiscal policies as an instrument for reducing social inequalities. It begins by examining the capitalist mode of production and the challenges facing the democratic state governed by the rule of law, noting that the State employs fiscal policies to foster social and economic development. The study reflects on the market economy within a globalized world, considering both its merits and drawbacks and highlighting the importance of the capitalist mode of production to the current economic model. Subsequently, it addresses the development of social policy—facilitated by monetary and fiscal measures—as a fundamental aspect of state activity. This is viewed as an obligation toward society aimed at reducing social inequality, respecting the collective interest, and effectively contributing to national development. Finally, the study concludes that by implementing fiscal policies—specifically through taxation and the balancing of revenues and expenditures via budgetary planning—the State fulfills a role that complements its broader policy objectives. Revenue generation and social initiatives are not mutually exclusive; rather, this approach represents an evolution in the national landscape, aligning fiscal policy with the economic and financial legal framework to ensure compliance with constitutional provisions. The study employed a deductive approach combined with bibliographic research.