Discretionary Fiscal Policy

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Definition: Discretionary Fiscal Policy


Quick Summary of Discretionary Fiscal Policy


In macroeconomics, a discretionary fiscal policy is an economic policy based on the ad hoc judgment of policymakers as opposed to a policy set by predetermined rules.



What is the dictionary definition of Discretionary Fiscal Policy?

Dictionary Definition


A Discretionary fiscal policy refers to a government policy that alters government spending or taxes. Its purpose is to expand or shrink the economy as necessary.


Full Definition of Discretionary Fiscal Policy


Non-mandatory changes in taxation, spending, or other fiscal activities by a government in response to economic events or changes in economic conditions. A discretionary fiscal policy implies government actions above and beyond existing fiscal policies and often occurs in periods of recession or economic turbulence.


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Definition Sources


Definitions for Discretionary Fiscal Policy are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 3rd January, 2020 | 17 Views.