FISCAL POLICY is One of the two instruments of Macroeconomics Policy; Monetary Policy's side-kick. It comprises Public Spending and Taxation, and any other Government income or assistance to the private sector (such as tax breaks). It can be used to influence the level of demand in the economy, usually with the twin goals of getting Unemployment as low as possible without triggering excessive Inflation. At times it has been deployed to manage short-term demand through Fine Tuning, although since the end of the Keynesian era it has more often been targeted on long-term goals, with monetary policy more often used for shorter-term adjustments.
definition from economist.com