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

Since then, thanks largely to aggressive monetary and fiscal policy, every decline in stocks has been an if-you-blinked-you-missed-it kind of event.

From The Wall Street Journal • Apr. 17, 2026

That included both central bank policy and fiscal policy - the government's decisions on taxation and spending - he said.

From BBC • Apr. 15, 2026

That growth, he said, reflects “tailwinds from fiscal policy, favorable financial conditions, and investment in AI.”

From Barron's • Mar. 31, 2026

The survey explored both how the participants perceived the nature and severity of the risk regarding Social Security, Medicare and fiscal policy, and how they might act to hedge the risk.

From MarketWatch • Mar. 27, 2026

The fiscal policy of the Spanish government was in early years not unfavorable to Cuba.

From The History of Cuba, vol. 1 by Johnson, Willis Fletcher