This study examines the effects of fiscal commitment on the confidence of businessmen and how this impacts the production decisions. The study contributes to the literature since it is the first to address the influence of fiscal reputation and reach of primary surplus targets on business confidence. The findings indicate that the development of fiscal reputation and compliance of the primary surplus targets signal entrepreneurs a higher government commitment to public accounts, which promotes an increase in optimism of these entrepreneurs in relation to its business and the economy, and thus stimulates industrial production.