What Is a Spending Policy?

Fiscal expenditure policy refers to the effect of increasing or decreasing government budget expenditures and increasing or decreasing fiscal deficits on aggregate demand.

Fiscal expenditure policy

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Fiscal expenditure policy refers to the effect of increasing or decreasing government budget expenditures and increasing or decreasing fiscal deficits on aggregate demand.

Fiscal expenditure policies are used in a variety of ways, including fiscal appropriations, government procurement, and indirect fiscal expenditures such as financial guarantees and financial aid.