to the citizens. For instance, expenditure on infrastructural projects not only increases access to more roads but also creates jobs to the public and also increases the amount money in circulation thereby spurring economic growth. On the other hand, reduction of income and value added taxes increase the amount of disposable income that individuals direct to consumption and investment expenditures. Increasing income taxes reduce disposable income while it increases the tax base for public spending. Fiscal policy instruments are effective in poverty reduction and promotion of the community living standards. Increasing public expenditure ensures that vital public goods and services are availed to the public. Moreover, it helps in creation of employment opportunities, triggering economic growth, and ensuring sustainable growth and development. Tax reduction and cash transfers’ helps in increasing disposable income and transferring resources from the rich to the poor in the community. Fiscal policy instruments can be used to achieve balanced growth in an economy. Federal policies are system of laws, course of actions, regulatory measures, and priorities set by the Federal government in guiding decisions on issues relating to public interest. In most cases, public policy decisions are carried out by the group of people who represent the public, different interests, and beliefs. The policies define all the actions that the Federal government take in order to address issues like security, education, unemployment, poverty reduction among others. Federal policies assist the Federal government in conducting national affairs responsibly. For instance, they inform the government on where to prioritize their funding and support in order to achieve the macroeconomic objectives. For instance, the government is charged with the responsibility of providing education, security, and healthcare. Increased funding on these key priority areas helps in improving public access to the services thereby improving the standards of living of the citizens. Assuring access to the services and sustaining their provision helps in poverty reduction. Policies like unemployment insurance ensures that citizens are insured and unemployment benefits given to eligible workers who have lost their jobs out of their control. Policies helps in cushioning the public against the eventualities in the labor market that may be due to competition or economic performance hence adversely affecting the average citizens. Federal policies cuts across all sectors in the economy and seeks to link the operations of the Federal government and State governments in achieving sustained growth and development, poverty reduction, provision of basic