- This study aims to determine the fiscal policy strategy on output and inflation in the Indonesian economy in dealing with the effects of the covid virus 19. In this study, researchers chose to use descriptive research types, namely to explain an event whose operation revolves around data collection, data processing and data interpretation which is given a national meaning while still holding the principles of logic to form holistic conclusions. Data obtained through the study of literature, by reading and analyzing and analyzing a variety of literature, both in the form of documents, journals, publication data from the ministry of finance and from the official website that releases information that is relevant to research. While the data analysis is done by reducing, classifying, interpreting, and drawing conclusions. The Indonesian government adopted a comprehensive policy in the fiscal and monetary sector to deal with Covid-19. In the fiscal sector, the Government conducts a policy of refocusing activities and budget reallocation. From the revenue side, the government must pay attention to the contribution contribution from PPN and PPh Agency and from the expenditure side, the government must be able to pay attention to the realization of the use of these funds so that it is right on target and prioritizes the priority activities of the Covid pandemic prevention -19 To suppress the budget deficit.