Fiscal Policy:

Fiscal policy refers to the use of taxation and spending by governments to influence the economy. In this regard, governments make decisions to determine levels of taxation, expenditure or borrowing. The objectives of fiscal policy are often centered around the need to stabilize the economy, promote economic growth, control inflation and ensure income redistribution to address challenges of inequality. Fiscal policy is therefore essential for influencing and shaping the economic environment and achieving macroeconomic objectives including full employment, price stability, and sustainable economic growth.

Fiscal Justice:

Fiscal justice refers to the fair and equitable distribution of the burden of taxation and public expen- diture within a society. It encompasses principles of fairness, equality, and efficiency in the allocation of financial resources by the government. Fiscal justice seeks to establish a tax system whereby those with higher incomes or wealth contribute proportionately more to public revenues than those with lower incomes or wealth. It also seeks to ensure that public resources are allocated in a way that promotes social welfare, human rights and addresses inequalities.