Political theory informs policy decisions by providing a framework for understanding governance, power dynamics, and the role of the state. It offers insights into justice, rights, and the ideal functions of political institutions. Theoretical perspectives help policymakers navigate ethical considerations, define the public interest, and shape laws that resonate with a society's values. By engaging with various political ideologies, decision-makers can craft policies that reflect democratic principles and respond effectively to changing social needs, ultimately fostering good governance.