The paper explores how investing in public infrastructure in emerging economies affects welfare. By combining monetary and fiscal policies, the study shows that financing infrastructure projects is crucial for economic stability. Without proper fiscal adjustments, increased government spending can lead to inflation and reduce private consumption and investment. However, when both policies work together, infrastructure investment can significantly improve the economy and benefit different groups of people. Savings households benefit the most from new bond issuance, while those living paycheck to paycheck benefit from non-distorting tax adjustments.