The significance of fiscal policy in economic governance lies in its role in regulating a country's economy through government spending, taxation, and borrowing. Fiscal policy influences economic growth, employment, and inflation by determining how resources are allocated. Effective fiscal policies enable governments to stabilize the economy during fluctuations, promote investment, and fund essential public services. By managing deficits and surpluses, governments can foster a favorable environment for business development. Comprehensive fiscal policy frameworks are crucial for ensuring sustainable economic development and maintaining public confidence in government actions, ultimately leading to improved quality of life for citizens.