| Fiscal Policy | Monetary Policy |
| Associated with government spending, borrowing and taxation |
Associated with changes in money supply in the economy through interest rates |
| Measures are taken by the Government |
Measures are taken by the Central Bank |
| There is no specific target |
Targets inflation (±4%) |
| It has effect on government budget/ borrowings |
It has effect on exchange rate and housing market ,Loans |
| Can have strong political dimension in changing
taxation rates |
Mostly independent from the political process |