What Is the Meaning of Fiscal Responsibility?

It is a word used often in politics and the financial world, often without the benefit of definition. The words fiscal responsibility evokes ideas of penny-pinching and no debt, but the real meaning is much more complex.

Features

Fiscal means financial or pertaining to the treasury or revenue parts of the government. Responsibility is having a legal or moral obligation to or being accountable for something or someone.

Significance

Although the definition of the two words making up the term fiscal responsibility means having an obligation to or being accountable for the finances or the revenue and treasury departments, the term is used to describe everything from financial reform to tax cuts.

Budget

Fiscal responsibility is also used to describe a balanced budget or one where the expenses match the revenues. It means having a balanced budget.

Considerations

Many politicians, lobbyists and media pundits use the term fiscal responsibility because it is a word that grabs attention. To find out the meaning of the term as used by the speaker, put it in context to the rest of the statement being made.

Misconceptions

Fiscal responsibility is not a subjective term. In truth, something or someone is or isn’t responsible or accountable for another’s finances.

References

• New York Times: What's Sustainable About this Budget
• Financial Dictionary: Balanced Budget
• CNN Cafferty File: GOP in Position to Talk Fiscal Responsibility