Discretionary Fiscal Policy

Business, Legal & 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.

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.

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
Modern Language Association (MLA):
Discretionary Fiscal Policy. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 23, 2021 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: September 23, 2021).
American Psychological Association (APA):
Discretionary Fiscal Policy. PayrollHeaven.com. Retrieved September 23, 2021, 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)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 3rd January, 2020 | 31 Views.