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

Barclays does acknowledge that relatively loose fiscal policy in the U.S.,

From MarketWatch • May 6, 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

“Spikes in gilt yields in response to political headlines show that investors are still nervous that political change could lead to looser fiscal policy and higher inflation,” said Andrew Wishart, senior U.K. economist at Berenberg.

From MarketWatch • Mar. 20, 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