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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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They’re costly, no doubt, but their cost is manageable within the confines of federal fiscal policy.

From Los Angeles Times Sep. 1, 2026

Currency interventions that aren’t backed by a shift in central bank policy or fiscal policy historically buy weeks but can fizzle out after that.

From The Wall Street Journal Aug. 4, 2026

Knightley adds that the European venue means Warsh will inevitably be asked about what fiscal policy has done to contribute to inflation pressures.

From Barron's Jul. 1, 2026

Greenspan, while officially in charge of monetary policy, actually played a key role in shaping fiscal policy.

From Barron's Jun. 26, 2026

The economy   rebounded in 2003-05, growing at a 4% rate each year, as the   government tightened fiscal policy and implemented structural   reforms to boost competition and efficiency in the markets.

From The 2007 CIA World Factbook by United States. Central Intelligence Agency

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