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MACRO & MICRO ECONOMICS of of affiliation The benefits of the private investments for growth and expansion of a nation’s economy is a well-founded fact. The private investment is regarded as a fundamental aspect in promoting a broad based and well-sustained growth (Razin, Assaf, and Jacob, 2006). This is immensely attributed to the almost immediate response of private investment to the dynamism of economic policies, which include the governmental fiscal policy. This essay seeks to examine the effects of the fiscal policies on the private investments, particularly, the fundamentalism of long-term fiscal sustainability for economic growth and development.