State Fiscal Policy

State fiscal policy involves how state governments manage their budgets through spending and taxation to influence the economy. By adjusting taxes and government expenditure, states can promote growth, control inflation, and address economic concerns. For example, increasing spending on infrastructure can create jobs, while raising taxes might reduce budgets during booms. These decisions impact public services, employment, and overall economic stability within the state, making fiscal policy a critical tool for governors and state legislatures to shape economic health and meet community needs.