Efficacité de la politique budgétaire à Madagascar[Effectiveness of fiscal policy : case of Madagascar]

This article assesses the effectiveness of fiscal policy in Madagascar by analyzing the impact of expansionary policies, such as increased public spending and tax cuts, on economic growth, aggregate demand, and macroeconomic stability. Using a calibrated DSGE model, the study explores how different fiscal interventions and spending affect household consumption, private investment, and national production within the context of Madagascar's structural challenges. Findings indicate that tax reductions stimulate private consumption and investment, while increases in operational spending more significantly boost national production. Error variance analysis suggests that, for Madagascar, a policy focused on public spending may be more effective than simply reducing taxes. The study concludes with recommendations for more efficient budget management to reduce reliance on external financing and promote strategic investments for economic recovery