The policy of a government in controlling its own expenditures and taxation, which together make up the budget.
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.
The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
Examples from the Web for fiscal policy
First, as a fiscal-policy nerd with a raft of élite degrees, a technocratic tendency to lose an audience in details.Francois Hollande: France’s Anti-Sarkozy President
May 7, 2012