Abstract The primary goal of the paper is to highlight the limitations and negative consequences of the fiscal policy. The federal government utilizes the fiscal instruments such as control of the debt, taxation, and changes of the legal and regulatory systems. Nonetheless, the critical drawbacks are related to the lack of the information and application within the wrong economic cycle. In turn, the adverse consequences of the wrong application are the lack of investments in the development of the social infrastructure, budget deficit, and decrease in the public sector and productivity. However, the current fiscal proposal has a positive influence on my life, as it actively support the college education and career development. Introduction Firstly, fiscal policy can be defined as the ability of the governmental authorities to control the revenue and expenditure of the state treasury while influencing the order in the country and improving economic conditions simultaneously (Dwivedi, 2007). In this instance, the federal government is able to utilize taxation, modifications of the legal systems, federal investment, federal debt and borrowing, and by having an influence on the supply and demand, and social budgeting and working habits ( Congressional Budget Office , 2015). It remains evident that the crucial goal of fiscal policy is to maintain the balance between expenditure and income while providing favorable conditions for the economic development. Nonetheless, despite having initial positive intentions, fiscal policy might have adverse impacts such as lack of the expenditure on the social service, decrease in productivity due to tax cuts, budget deficit, minimization of the public sector due to presence of the lack of information, application within unsuitable timeframe, and consequences of the wrong implementation. The primary goal of this essay is to depict the limitations and issues of fiscal policy. In turn, it is critical to focus on the relevant of the current proposal in my life. In the end, the conclusions are drawn to summarize the findings. Limitations, Problems, and Consequences of Fiscal Policy Firstly, the primary limitations of the fiscal policy have to be discovered. Firstly, the lack information might lead to the application of the wrong adjustments. In this case, the lack of rational proof for the particular actions is one of the limitations (Taylor, 2009). Consequently, this problem might lead to the application within the wrong timeframe and lead to the adverse consequences, as the tools during the recession stage are not suitable during the time of growth. Secondly, the initial consequences of the wrong implementation are assessed, and the lack of expenditure in social service is one of them. Reducing the number of jobs and spending in the social sector are the primary goals to find the balance during the recession stages (Romer, 2010). In turn, the government was able to compensate the unemployment difficulties and taxation system by $787 billion to the American families, but it could have been avoided (Romer, 2010). Additionally, it might be a reason for the decrease in productivity due to the tax reductions and create a budget deficit. Both of these factors are related to the implementation within the wrong timeframe, as decreasing the tax during the