Define: Discretionary Fiscal Policy

UK Accounting Glossary

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.


Advertisement



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.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/discretionary-fiscal-policy/
Modern Language Association (MLA):
Discretionary Fiscal Policy. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 25, 2020 https://payrollheaven.com/define/discretionary-fiscal-policy/.
Chicago Manual of Style (CMS):
Discretionary Fiscal Policy. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/discretionary-fiscal-policy/ (accessed: February 25, 2020).
American Psychological Association (APA):
Discretionary Fiscal Policy. PayrollHeaven.com. Retrieved February 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/discretionary-fiscal-policy/

Definition Sources


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

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

This glossary post was last updated: 9th August 2019.