budget and tax policy

Budget and tax policy are essential components of government finance. The budget outlines how the government plans to spend money on public services like education, healthcare, and infrastructure over a specific period, often a year. Tax policy determines how much individuals and businesses contribute to government revenue through taxes, which can include income tax, sales tax, and property tax. Together, these policies influence economic growth, public investment, and social programs. Balancing the budget—spending within the government’s means without excessive borrowing—is crucial for economic stability and maintaining public trust.