Financial Terms Dictionary: ELI5 Version - Fiscal Policy

Fiscal Policy:

a pivotal macroeconomic instrument, denotes the deployment of government expenditure and taxation measures to influence the overall level of economic activity, foster economic growth, and attain specific socioeconomic objectives within a nation's economy. Formulated and implemented by government authorities, fiscal policy operates in conjunction with monetary policy, striving to achieve a balanced and sustainable economic environment through judicious management of public finances.