Budgetary policy

Fiscal policy is a policy area that deals with the income and expenditure of the state budget or other public budget.

If influenced by counter-cyclical fiscal policy on the economy, we speak of economic policy. The part of the field of fiscal policy can therefore be associated both with the financial policy and the economic policy.

The decision on the budget is the ultimate exercise of the budget law. Since the focus of the policy are essentially determined by him, the perception of the budget law is not with governments or public lines, but the parliaments and representatives (for example, the local council ). Basically, ministries and administrations are only authorized with an effective budgetary decision to dispose of budget estimates. Is a year already begun and not yet adopted a budget or approved in municipalities that corporation is in the preliminary financial management, while the only expenses are permissible for which there is a legal obligation or to prevent harm to the body.

The administrative financial policy of the state is mostly located in a separate ministry. In Germany at the federal level, the Federal Ministry of Finance, along with the provinces have their own finance ministries and the local treasurer. Lack of government revenue are often financed through debt. These bank loans are taken out or placed on federal bonds, for example, by the German Finance Agency.

In the European monetary union, fiscal policy is severely limited by the EU convergence criteria in order to avoid secondary effects due to monetary alimentation and thus caused inflation. A Euro - shield contains the Monetary Union Financial Stability Act. A dictated by strict budgetary constraints fiscal policy is called austerity.

In Switzerland, the basic principles of financial policy are set out in the Constitution. Pursuant to Article 126 ( " Housekeeping ") may in the long term, ie over several years, no shortfalls result ( deficit brake), and also a debt brake is set.