What is fiscal policy:
Fiscal policy refers to the use of government spending and taxation to influence the economy. It's a tool that governments use to manage macroeconomic conditions like economic growth, employment, and inflation.
How Fiscal Policy Reduces Poverty:
Government spending on services – More money for education, healthcare, and housing helps poor people improve their lives.
Job creation – By spending on infrastructure (like roads and schools), the government creates jobs and income.
Welfare and subsidies – Providing financial help to low-income families reduces hardship.
Progressive taxation – Rich people pay more taxes, and that money is used to support the poor.
THE END