This indicator evaluates the effectiveness and sustainability of a country’s fiscal policy, considering not just immediate financial practices but also the broader implications for economic growth and stability. It analyzes how well fiscal strategies align with monetary and exchange rate policies while ensuring manageable public debt levels. A high rating reflects robust policies that foster economic resilience and growth potential, supported by prudent debt management and effective resource allocation. Conversely, a low rating may indicate weaknesses such as systemic imbalances or unsustainable practices that could undermine economic progress. Ultimately, this measure serves as a critical gauge for investors and policymakers, highlighting the interplay between fiscal discipline and long-term economic viability. Source: