Fiscal conservatism influences policy decisions by advocating for limited government spending and a balanced budget, which drives politicians to focus on efficiency and reducing public debt. This approach often leads to prioritizing tax cuts and cutting social programs, as proponents argue that reducing government intervention stimulates economic growth. However, critics contend that fiscal conservatism may neglect essential social services necessary for public welfare and equality. Overall, fiscal conservatism shapes the economic landscape by setting a benchmark for government financial responsibilities and influencing broader economic policies.