The activity focused on group decision making to achieve various objectives is known as politics. It is about making use of the power that has been achieved to resolve conflicts of interest that exist in a population or society.
An eastern term, politics, which has its etymological origin in Greek and specifically in the word polis, which can be translated as "city." But not only from this one emanates but also from what was known at that time as "La Politeia" which was the name that the Greeks used to refer to the so-called "Polis Theory".
Fiscal, coming from the Latin fiscālis , is that which belongs to or is related to the treasury (as it is called the set of public organisms destined to the collection of taxes or the public treasury in general).
What is known as fiscal policy, therefore, is a division framed in economic policy that is responsible for establishing the budget of a State, with taxes and the variable of public spending as points to consider to preserve financial stability.
The purpose of fiscal policy is to enable the growth of the economy, cushion the ups and downs of economic periods and guarantee the proper administration of State resources. Fiscal policy measures have a short-term impact on the level of employment, production, and market prices.
Due to all these hallmarks of fiscal policy, over the years it has become the focus of many groups and thinkers who have not hesitated for a single moment to question it. And it is that the circumstances to which it has led on occasions have made not everyone trust it.
In this way, among the main arguments that have been put forward against it is the one that can cause a decrease in investment demand, it can bring with it what is a trade deficit and is also based on the propensity to consume it is not always the same, it is absolutely fickle.
Like all political activity, fiscal policy is determined by the ideology of its designer and executor. The government can implement an expansionary fiscal policy (with an increase in public spending or tax cuts) or a contractionary fiscal policy (which seeks to cut public spending and / or increase taxes).
Ultimately, fiscal policy must serve to distribute a country's wealth and correct market failures. For ethical reasons, it is considered that fiscal policy should favor those who have less to achieve social inclusion and avoid outbursts.
Finally, it is necessary to underline the fact that in Spain there is what is known as the Fiscal and Financial Policy Council. This body, created in 1980 and which is part of the Ministry of Finance and Public Administrations, whose objective is to coordinate what is the financial activity of the State in general with that which takes place between the different autonomous communities that make up the country.