Fiscal policy of the United States half of what it was in 2004 and the budget appeared well on its way to balance once again. Fiscal policy is the application of taxation and government spending to influence economic performance. The main aim of adopting fiscal policy instruments is to promote sustainable growth in the economy and reduce the poverty levels within the community. In the past, fiscal policy instruments were used solve the economic crisis such as the great recession and during the financial crisis. They are effective in jump-starting growth, supporting the financial systems, and mitigating the economic crisis on the vulnerable groups especially the
Fiscal transparency 2012 reviewed the state of fiscal transparency in the wake of the global financial crisis and proposed a series of improvements to existing international fiscal transparency standards and monitoring arrangements. The 2012 paper laid the groundwork for the IMF’s new Fiscal Transparency Code and Fiscal Transparency Evaluation that replaced the 2007 Code and the related fiscal module of the ROSC. The new Code covers four key elements of fiscal transparency: For each of the principles defined in the Code, the new Code differentiates between basic, good, and advanced practices in order to distinguish between different levels of performance and capacity