Expansionary Fiscal Policy is a government strategy used to stimulate economic growth, especially during a recession. It involves increasing public spending or cutting taxes to boost overall demand. By doing so, the government aims to create jobs, increase consumer spending, and encourage businesses to invest. This policy can lead to higher budget deficits in the short term, as the government spends more than it collects in revenue. However, the goal is to spur economic activity, which can eventually lead to increased tax revenues and a healthier economy in the long run.