3.6.2—Fiscal policy goals

Syllabus
First assessment 2022
Objective
3.6.2
Level
SL

3.6.2 — Fiscal policy goals

Fiscal policy may pursue growth, employment, price stability, equity, external balance and sustainability.

Goals can conflict across time and groups; a policy should state its priority and constraint.

Identify objective, time horizon and affected stakeholders.

A transfer may reduce poverty but increase spending unless financed elsewhere.

There is no single “good” fiscal stance without context.