Explain the concept of fiscal sustainability.

Explain the concept of fiscal sustainability.

Fiscal sustainability refers to the ability of a government to maintain its current spending and revenue policies over the long term without jeopardizing its financial stability or accumulating excessive debt. It involves ensuring that government expenditures are in line with the available resources and that the government can meet its financial obligations without relying heavily on borrowing. Achieving fiscal sustainability requires careful management of public finances, including maintaining a balanced budget, controlling public debt levels, and implementing policies that promote economic growth and stability.