Fiscal policy

This refers to a government’s approach to managing its economy.

The principle elements of a fiscal policy are the levels of public spending and taxation, plus the degree of budget deficit or surplus the government is prepared to accept. For example, increasing public spending will typically require higher levels of taxation or an acceptance of higher levels of budget deficit.

Fiscal policies is a term normally found in business economics and financial management.

Explore our learning zone to discover more

This entry was posted in . Bookmark the permalink.