The policy of a government in controlling its own expenditures and taxation, which together make up the budget.
Note: 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.
Business claims that uncertainty in fiscal policy hinders its ability to make plans and invest.
Yet the mesmerizing fact in US fiscal policy is not the cost of defense, but the wastefulness of US health spending.
Congress and the president need to avoid excessive austerity with respect to changes in fiscal policy this year.