Peran Kebijakan Fiskal dalam Mendukung Pemulihan dan Pemberdayaan UMKM terhadap Pertumbuhan Ekonomi Lokal

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play an important role in supporting economic activities at teh local level. In many regions, MSMEs become one of the main drivers of economic growth because they are able to create employment opportunities, increase community income, and encourage the circulation of money within the local economy. However, various wconomic challenges in recent years have affected the sustainability of many MSMEs. Decreasing demand, limited access to capital, and unstable market conditions have made it difficult for some businesses to maintain their productivity and development. In the situation, fiscal policy becomes an important instrument used by the government to support economic recovery and strengthen the capacity of MSMEs, and direct financial assistance are expected to reduce the financial burden faced by MSMEs actors. Trought these policies, the government attempts to create a more supportive environment for business activities and help MSMEs continue their operations. This study aims to analyze the role of fiscal policy in supporting the recovery and empowerment of MSMEs and its impact on local economic growth. The results indicate that appropriate fiscal support can help MSMEs improve their bussiness performance and maintain their sustainability. When MSMEs receive adequate support, they are more capable of expanding their activities and increasing productivity. As a result, MSMEs can contribute more significantly to job creation and economic development, which ultimatly, supports sustainable economic growth at the local level.