Fiscal policy is the way governments take in revenue through taxes and spends it on different public services. Browse Investopedia’s expert-written library to learn more.

A revenue deficit occurs when a government's total income is not enough to cover its total spending, not counting any loans or debt repayments.

Fiscal policy refers to how the government manages taxes, spending, and borrowing to meet economic goals. In simple terms, it involves government actions in spending and taxation aimed at promoting ...