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

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

Japan faces a complex triple threat of rising crude prices, a widening trade deficit, and a shift in fiscal policy.

From The Wall Street Journal • Mar. 23, 2026

This time, markets are watching for intervention as Japan faces a complex triple threat: rising crude prices, a widening trade deficit and a fundamental shift in domestic fiscal policy.

From The Wall Street Journal • Mar. 23, 2026

This national government—based on proportional representation similar to that which existed in the former socialist regime—is charged with conducting foreign, economic, and fiscal policy.

From The 1999 CIA World Factbook by United States. Central Intelligence Agency