fiscal policy

1. 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.

Example Sentences

"However, softer earnings growth, higher inflation, tighter fiscal policy, and the lagged impact of past interest rate rises for some mortgagors point to much weaker real income growth moving forward."

From BBC

Short-term political interests of a president often diverge from sound long-term fiscal policy.

From Salon

Tesla did not provide an update on its outlook for the year, warning it was "difficult to measure the impacts of shifting global trade and fiscal policies".

From BBC

In my view, the “big, beautiful bill” represents a missed opportunity to leverage fiscal policy to address the American wealth and income gap.

From Salon

If doubts about the dollar’s future lead to even tighter fiscal policy, the social safety net could wither right when Americans need it most.

From Salon