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fiscal policy

Cultural  
  1. The policy of a government in controlling its own expenditures and taxation, which together make up the budget.


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A function of fiscal policy, along with monetary policy, is to regulate the level of economic activity, the price level, and the balance of payments. Fiscal policy also determines the distribution of resources between the public sector and the private sector and influences the distribution of wealth.

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Fiscal policy needs to play a role too, said Piti Disyatat, deputy governor for monetary stability at the Bank of Thailand in an interview.

From The Wall Street Journal • Oct. 10, 2025

Fiscal policy experts say their proposals misunderstand the role of funding authorization in Congress.

From Salon • Jan. 8, 2025

Fiscal policy should be led by evidence, she added, and if “there has to be a recalibration, it is right for governments to do so.”

From New York Times • Oct. 13, 2022

"Intense negotiations are expected and it might take time to form a new government. Fiscal policy will likely remain expansionary regardless of which side wins," Nordea Markets said in a note to clients.

From Reuters • Sep. 12, 2022

Fiscal policy means making decisions about what the government spends money on.

From Seattle Times • Oct. 5, 2021