I have already explained fiscal policy. Today, I am trying to more simplify its meaning.
"Fiscal policy is that policy which is made by Govt. of any country. It is just like direction of Govt. about how will it collect revenue and how will it use this revenue. It is different from Govt. Budget. Govt. budget is just like estimation of one year expenditures and incomes but fiscal policy is planning to increase revenue of Govt. and decrease the expenditures. But one point is remembered that Govt. may not reduce all type of expenditures.So, paying important and necessary expenditures, it issues new currency notes. How much new notes will be issued? Its planning also includes in fiscal policy."