<p><em>Fiscal impulse</em> is synonymous with <em>fiscal stimulus</em>. <a href="http://www.ief.es/documentos/recursos/publicaciones/revistas/presu_gasto_publico/59-06.pdf" rel="nofollow noreferrer">This</a> article defines a fiscal impulse as:</p>

<blockquote>
  <p>the additional financial impact of government finances on the economy relative to a reference situation</p>
</blockquote>

<p>The same document provides an example of a fiscal impulse for Spain. Table 1 (in page 9) provides a disaggregation of the different channels through which such stimulus impacts the economy. One of them is <strong>indirect taxation</strong>, which affects households' consumption. </p>

<p>Therefore, using a price index like WPI, which removes indirect taxes, removes (part of) the effect of a fiscal impulse on the price index.</p>

CC BY-SA 3.0
2017-08-18T16:46:01.667Z
2017-08-18T16:46:01.667Z
luchonacho
<p>This looks like a quotation from <a href="http://indianexpress.com/article/business/economy/measuring-capital-goods-production-work-in-progress-but-may-not-end-volatility-4657497/" rel="nofollow noreferrer"><em>The Indian Express</em></a></p>

<p>WPI is likely to mean "Wholesale Price Index", similar to what is sometimes called the "Producer Price Index" and related to GDP deflators, but distinct from the "Consumer Price Index".  </p>

<p>The exclusion of indirect taxes is presumably designed to avoid measuring price changes directly associated with India's introduction of a national Goods and Services Tax in 2017.    </p>

CC BY-SA 4.0
2021-12-09T17:50:08.913Z
OP asked about "fiscal impulse" not "WPI"
Dustin Rasener
CC BY-SA 4.0
2021-12-09T18:12:58.140Z
@DustinRasener You may be right, though when I answered it I was aiming at the whole phrase.  Consumer price indices typically include sales taxes or VAT while wholesale  price indices typically do not, and I thought that was what the quotation was trying to say.
Henry
CC BY-SA 3.0
2017-08-18T16:36:47.940Z
2017-08-18T16:36:47.940Z
Henry
<p>I came across this term in the following paragraph and I could not comprehend what it meant. </p>

<blockquote>
  <p>The new WPI series does not include any indirect taxes, which brings it conceptually closer to the producer prices and also removes fiscal impulse impact</p>
</blockquote>

CC BY-SA 3.0
2017-08-04T11:58:31.773Z
I think you need to add more contextual information - where does this quote come from? What is WPI?
Brian Romanchuk
<fiscal-policy>
What is fiscal impulse?
user160370
# What is fiscal impulse?

(Asked by: username_0 on 2017-07-30)

I came across this term in the following paragraph and I could not comprehend what it meant.

> The new WPI series does not include any indirect taxes, which brings it conceptually closer to the producer prices and also removes fiscal impulse impact

**Tags:** fiscal-policy
> **Comments:**
> **username_1**: I think you need to add more contextual information - where does this quote come from? What is WPI?  

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## 2 answers

### Answer by username_2 on 2017-08-18. Score: 2

*Fiscal impulse* is synonymous with *fiscal stimulus*. [This](http://www.ief.es/documentos/recursos/publicaciones/revistas/presu_gasto_publico/59-06.pdf) article defines a fiscal impulse as:

> the additional financial impact of government finances on the economy relative to a reference situation

The same document provides an example of a fiscal impulse for Spain. Table 1 (in page 9) provides a disaggregation of the different channels through which such stimulus impacts the economy. One of them is **indirect taxation**, which affects households' consumption.

Therefore, using a price index like WPI, which removes indirect taxes, removes (part of) the effect of a fiscal impulse on the price index.


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### Answer by username_3 on 2017-08-18. Score: 1

This looks like a quotation from [*The Indian Express*](http://indianexpress.com/article/business/economy/measuring-capital-goods-production-work-in-progress-but-may-not-end-volatility-4657497/)

WPI is likely to mean "Wholesale Price Index", similar to what is sometimes called the "Producer Price Index" and related to GDP deflators, but distinct from the "Consumer Price Index".

The exclusion of indirect taxes is presumably designed to avoid measuring price changes directly associated with India's introduction of a national Goods and Services Tax in 2017.

> **Comments:**
> **username_4**: OP asked about "fiscal impulse" not "WPI"  
> **username_3**: @DustinRasener You may be right, though when I answered it I was aiming at the whole phrase.  Consumer price indices typically include sales taxes or VAT while wholesale  price indices typically do not, and I thought that was what the quotation was trying to say.  

---

