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 March 31, 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: Climate finance, Commodities, Digitalization, Electricity, Environment, Expenditure, Fiscal consolidation, Fiscal policy, Gross fixed investment, Infrastructure, National accounts, Non-renewable resources, Public investment spending, Renewable energy, Technology

Keywords: Belgium, Capacity development delivery, Climate change, Climate finance, Digitalization, Digitalization, Electricity, Fiscal consolidation, Fiscal consolidation, Fiscal policy, Green transition, Gross fixed investment, Infrastructure, Non-renewable resources, Private investment, Public investment, Public investment spending, Renewable energy

Publication Details

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