Chapter 1. Concept, types and purposes of fiscal policy

Fiscal (budgetary-tax) policy is a system for regulating the economy through changes in government spending and taxes. Taxes and Government spending are the main instruments of fiscal policy. Fiscal policy may as well beneficially and quite painfully affect the stability of the national economy.
Fiscal policy, also known as a financial and budgetary-financial policy, widespread its activity to the major elements of the State Treasury (Fisk). It is directly linked with the State budget, taxes, government monetary income and expenditure. In a market economy it is the basic part of the State economic. Fiscal policy combines budgetary, tax, revenue and expenditure policies.