Plain meaning
Government choices about taxation, spending, borrowing, and transfers.
Also called
fiscal stimulus
fiscal measures
fiscal plan
Key points
- Fiscal policy can affect household disposable income through taxes, benefits, credits, and transfers.
- It can affect businesses through deductions, credits, tariffs, subsidies, procurement, and program funding.
- Deficits and debt levels are fiscal-policy outcomes, not only accounting figures.
- Fiscal policy is separate from monetary policy, which is conducted by the central bank.
Why it comes up
Many ReFocus Tax articles are fiscal-policy articles because they connect government revenue, spending, credits, public debt, and taxpayer-facing rules.