Author(s): Ding Li
ABSTRACT Fiscal policy government decisions on taxation, spending, and borrowing—plays a pivotal role in shaping the economic landscape in which businesses operate. It influences aggregate demand, investment climate, consumer behavior, and overall market stability. In both developed and emerging economies, fiscal policy serves as a strategic tool to stimulate growth, manage inflation, and support employment. This article examines how fiscal policy affects business environments, highlighting its mechanisms, impacts, and implications for long-term economic development.