Selected Issues Papers

Increasing Public Investment, Fostering Digitalization, and Supporting the Green Transition: A Difficult Challenge

By Xun Li, Yu Ching Wong

March 26, 2025

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Format: Chicago

Xun Li, and Yu Ching Wong. "Increasing Public Investment, Fostering Digitalization, and Supporting the Green Transition: A Difficult Challenge", Selected Issues Papers 2025, 019 (2025), accessed April 18, 2025, https://doi.org/10.5089/9798229004657.018

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Summary

Public investment in Belgium has been low historically. Against severe budgetary constraints and fiscal consolidation requirements, public investment should however be preserved or, ideally, increased to mitigate the demand impact of consolidation and enhance productive capacity to lift potential growth. Furthermore, there is growing need for strategic public investment to facilitate digitalization and the green transition. This paper examines these intertwined challenges and proposes policy measures to help bolster public investment.

Subject: Environment, Expenditure, Gross fixed investment, Infrastructure, National accounts, Non-renewable resources, Public investment spending

Keywords: Belgium, C. addressing investment, Digitalization, Electricity price, Fiscal consolidation, Fiscal policy, Fostering digitalization, Global, Green transition, Gross fixed investment, Infrastructure, Investment gap, Investment need, Non-renewable resources, Public investment, Public investment spending

Publication Details

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