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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

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Historically, they were not coordinated: Fiscal policy followed the Congressional cycle, monetary policy was set by an independent Federal Reserve and credit policy reflected often random decisions by regulators.

From The Wall Street Journal • Jan. 14, 2026

"Fiscal policy is implemented through the federal budget."

From Salon • Nov. 3, 2024

"Fiscal policy can help monetary policy in reducing demand pressures," the IMF said in a blog post on its outlook for the region's economy.

From Reuters • Apr. 13, 2023

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

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

From Seattle Times • Oct. 5, 2021

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