The objective of the research is twofold. The study examines the role of public finance in promoting sustainable development in SSA. Secondly, the study investigates the optimal level of public finance beyond which public finance crowds out investment and hinders sustainable development in SSA. The study adopts a battery of econometric techniques such as the traditional ordinary least square (OLS) estimation technique, Driscoll-Kraay covariance matrix estimator, and the dynamic panel threshold model. The study found that an increase in public debts lead to a decline in sustainable development. In contrast, the results show that increase in spending on health and education, and tax can engender sustainable development in SSA. Further, we uncover the optimal levels of public spending on health and education, and public debts that engenders sustainable development in SSA. One main implication of the findings is that governments across SSA needs to reduce public debts levels and increase public spending on health and education to within the threshold levels established in this study to aid sustainable development in SSA.

Acheampong, A. O., Adebayo, T. S., Dzator, J., et al. (2023). Income inequality and economic growth in BRICS: insights from non-parametric techniques. The Journal of Economic Inequality, 21(3), 619–640. https://doi.org/10.1007/s10888-023-09567-9

Apergis, N. (2020). The role of fiscal policy in the link between income inequality and banking crises. Applied Economics Letters, 28(15), 1283–1287. https://doi.org/10.1080/13504851.2020.1808570

Auerbach, A. J., Gorodnichenko, Y., & Murphy, D. (2021). Inequality, fiscal policy and COVID19 restrictions in a demand-determined economy. European Economic Review, 137, 103810. https://doi.org/10.1016/j.euroecorev.2021.103810

Bahmani-Oskooee, M., & Ranjbar, O. (2016). Quantile unit root test and PPP: Evidence from 23 OECD countries. Applied Economics, 48(31), 2899–2911. https://doi.org/10.1080/00036846.2015.1130794

Baselgia, E., & Foellmi, R. (2022). Inequality and growth: a review on a great open debate in economics. WIDER Working Paper. https://doi.org/10.35188/unu-wider/2022/136-5

Bénabou, R. (2000). Unequal Societies: Income Distribution and the Social Contract. The American Economic Review, 90(1), 96–129. https://doi.org/10.1257/aer.90.1.96.

Bhatti, A. A., Batool, Z., & Naqvi, H. A. (2015). Fiscal Policy and Its Role in Reducing Income Inequality: A CGE Analysis for Pakistan. The Pakistan Development Review, 54(4I-II), 843–864. https://doi.org/10.30541/v54i4i-iipp.843-864

Biyase, M., Eita, H., Udimal, T., et al. (2022). Military Spending and Inequality in South Africa: An ARDL Bounds Testing Approach to Cointegration. EDWRG Working Paper Number, 05.

Borissov, K., & Hashimzade, N. (2022). Fiscal policy and inequality in a model with endogenous positional concerns. Journal of Mathematical Economics, 103, 102765. https://doi.org/10.1016/j.jmateco.2022.102765

Chishti, M. Z., Ahmad, M., Rehman, A., et al. (2021). Mitigations pathways towards sustainable development: Assessing the influence of fiscal and monetary policies on carbon emissions in BRICS economies. Journal of Cleaner Production, 292, 126035. https://doi.org/10.1016/j.jclepro.2021.126035

Clifton, J., Díaz-Fuentes, D., & Revuelta, J. (2020). Falling Inequality in Latin America: The Role of Fiscal Policy. Journal of Latin American Studies, 52(2), 317–341. https://doi.org/10.1017/s0022216x20000334

Gunasinghe, C., Selvanathan, E. A., Naranpanawa, A., et al. (2020). The impact of fiscal shocks on real GDP and income inequality: What do Australian data say? Journal of Policy Modeling, 42(2), 250–270. https://doi.org/10.1016/j.jpolmod.2019.06.007

Halim, Md. A., & Rahman, Md. M. (2022). The effect of taxation on sustainable development goals: evidence from emerging countries. Heliyon, 8(9), e10512. https://doi.org/10.1016/j.heliyon.2022.e10512

Hashmi, S. M., Chang, B. H., & Rong, L. (2021). Asymmetric effect of COVID-19 pandemic on E7 stock indices: Evidence from quantile-on-quantile regression approach. Research in International Business and Finance, 58, 101485. https://doi.org/10.1016/j.ribaf.2021.101485

Hausmann, R., Sturzenegger, F., Goldstein, P., et al. (2022). Macroeconomic risks after a decade of microeconomic turbulence: South Africa (2007–2020). WIDER Working Paper. https://doi.org/10.35188/unu-wider/2022/134-1

Hickel, J. (2020). The Sustainable Development Index: Measuring the Ecological Efficiency of Human Development in the Anthropocene, Ecological Economics, 167. https://doi.org/10.1016/j.ecolecon.2019.05.011

International Monetary Fund (IMF) (2014a). Fiscal Policy and Income Inequality. Policy Papers, 14. https://doi.org/10.5089/9781498343671.007

International Monetary Fund (IMF) (2014b). Fiscal Policy and Income Inequality. IMF Policy Paper, International Monetary Fund Washington, D.C. Available online: https://www.imf.org/external/np/pp/eng/2014/012314.pdf (accessed on 23 July 2023).

Jiang, Y., Chang, T (2016). Bring Quantile Unit Root Test Back in Testing Hysteresis in Unemployment for the United States. Romanian Journal of Economic Forecasting, XIX (1).

Kakwani, N., & Pernia, E. M. (2000). What is Pro-poor Growth? Asian Development Review, 18(1), 1–16. https://doi.org/10.1142/s0116110500000014

Keynes, J. M. (1936). The General Theory of Employment, Interest and Money, Palgrave Macmillan. Brace, Harcourt, New York.

Klasen, S. (2016). "Gender, Institutions, and Economic Development: Findings and Open Research and Policy Issues," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers No. 211, Courant Research Centre PEG.

Kunawotor, M. E., Bokpin, G. A., Asuming, P. O., et al. (2022). The distributional effects of fiscal and monetary policies in Africa. Journal of Social and Economic Development, 24(1), 127–146. https://doi.org/10.1007/s40847-021-00172-y

López, R. E., Eugenio F. B. (2015). The nexus between fiscal policy and sustainable development: Insights for developing countries from the case of Chile. University of Chile.

Maitra, B., & Mukhopadhyay, C. K. (2013). Public spending on education, health care and economic growth in selected countries of Asia and the Pacific. Asia-Pacific Development Journal, 19(2), 19–48. https://doi.org/10.18356/e7c7bcb7-en

Malla, M. H., & Pathranarakul, P. (2022). Fiscal Policy and Income Inequality: The Critical Role of Institutional Capacity. Economies, 10(5), 115. https://doi.org/10.3390/economies10050115

Meng, F. (2024). Driving sustainable development: Fiscal policy and the promotion of natural resource efficiency. Resources Policy, 90, 104687. https://doi.org/10.1016/j.resourpol.2024.104687

Muinelo-Gallo, L., & Roca-Sagalés, O. (2013). Joint determinants of fiscal policy, income inequality and economic growth. Economic Modelling, 30, 814–824. https://doi.org/10.1016/j.econmod.2012.11.009

Mulok, D., Kogid, M., Asid, R., et al. (2012). Is economic growth sufficient for poverty alleviation? Empirical evidence from Malaysia. Cuadernos de economía, 35, 26–32. https://doi.org/10.1016/S0210-0266(12)70020-1

Olaoye, O. O. (2022). Interrogating sub‐Saharan Africa’s high economic growth rate and low poverty reduction rate: A poverty paradox? Journal of Public Affairs, 23(1). https://doi.org/10.1002/pa.2851

Olaoye, O., Bolarinwa, S. T., & Yaseen, M. (2023). Poverty eradication in sub-Saharan Africa: a government-led or private sector-driven approach? International Journal of Emerging Markets. https://doi.org/10.1108/ijoem-05-2021-0807

Sachs, J., Schmidt-Traub, G., Kroll, C., et al. (2021). The sustainable development goals and COVID-19. Sustainable Development Report 2020. https://doi.org/10.1017/9781108992411

Salotti, S., & Trecroci, C. (2018). Cross-country evidence on the distributional impact of fiscal policy. Applied Economics, 50(51), 5521–5542. https://doi.org/10.1080/00036846.2018.1487001

Shaw, T. M. (2014). African agency? Africa, South Africa and the BRICS. International Politics, 52(2), 255–268. https://doi.org/10.1057/ip.2014.48

Siburian, M. E. (2022). The link between fiscal decentralization and poverty—Evidence from Indonesia. Journal of Asian Economics, 81, 101493. https://doi.org/10.1016/j.asieco.2022.101493

Swain, B. R., & Yang-Wallentin, F. (2019). Achieving sustainable development goals: predicaments and strategies. International Journal of Sustainable Development & World Ecology, 27(2), 96–106. https://doi.org/10.1080/13504509.2019.1692316

te Velde, D. W., Rabinowitz, G., Worrall, L. (2015). European Report on Development 2015: Combining finance and policies to implement a transformative post-2015 development agenda. Available online: https://odi.org/en/publications/european-report-on-development-2015-combining-finance-and-policies-to-implement-a-transformative-post-2015-development-agenda/ (accessed on 20 July 2023)

Tregenna, F., & Tsela, M. (2012). Inequality in South Africa: The distribution of income, expenditure and earnings. Development Southern Africa, 29(1), 35–61. https://doi.org/10.1080/0376835x.2012.645640

UNCTAD. (2014). World Investment Report 2014: Investing in the SDGs: An Action Plan, investing in the SDGs: An Action Plan for promoting private sector contributions. UNCTAD/WIR/2014.

UNEP Finance Initiative (2020). Available online: www.genevaenvironmentnetwork.org (accessed on 23 May 2023).

UNEP. (2017). Fiscal Policy and SDGs: Green Economy. Policy Brief.

United Nations World Commission on Environment and Development, ed. Report of the World Commission on Environment and Development: Our Common Future. Oxford: Oxford University Press, 1987. https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf

UNU-WIDER. (2021). World Income Inequality Database (WIID)—Version 31 May 2021 [dataset]. In World Income Inequality Database (WIID). United Nations University, World Institute for Development Economics Research. https://doi.org/10.35188/unu-wider/wiid-310521