Definition

1. Noun:
   • A government's strategy for managing its budget: "Fiscal policy" refers to the use of government spending and taxation to influence a nation's economy.
   • A tool for economic stabilization: It is a primary method governments use to achieve macroeconomic objectives like controlling inflation, stimulating growth, or reducing unemployment.

Usage

• "Fiscal policy" is a technical term used in economics, finance, and political discourse. It is typically discussed in terms of being expansionary (increasing spending or cutting taxes to stimulate the economy) or contractionary (decreasing spending or raising taxes to slow down the economy).

Examples

• Noun:
  • The government announced a new fiscal policy aimed at boosting infrastructure investment.
  • Economists debated whether the current fiscal policy was effective in curbing inflation.
  • A country's fiscal policy is often coordinated with its monetary policy.

Advanced Usage

• "Tighten fiscal policy": To make fiscal policy more contractionary, usually by cutting spending or raising taxes.
  • The minister suggested the need to tighten fiscal policy to address the budget deficit.
• "Loose/Expansionary fiscal policy": To make fiscal policy more stimulative, usually by increasing spending or cutting taxes.
  • During the recession, the administration pursued a loose fiscal policy.

Variants and Related Words

• Fiscal (adj): Relating to government revenue, especially taxes.
  • The fiscal year ends in June.
• Fiscal stimulus (n): A specific package of government spending or tax cuts designed to boost economic activity.
  • The parliament approved a large fiscal stimulus package.

Synonyms

• Budgetary policy: A very close synonym, emphasizing the budget aspect.
• Government spending and taxation policy: A descriptive phrase with the same core meaning.

Related Phrases

• Monetary policy: The management of the money supply and interest rates by a central bank (e.g., the Federal Reserve), often discussed alongside fiscal policy.
  • The central bank's monetary policy complemented the government's fiscal policy.

Noun

1. a government policy for dealing with the budget (especially with taxation and borrowing)