Budget Interventions

Budget interventions are deliberate adjustments made by the government to influence economic activity through its budget policies. This can include increasing spending or cutting taxes to stimulate growth during downturns (expansionary measures), or reducing spending and raising taxes to control inflation and deficits (contractionary measures). These interventions aim to stabilize the economy, promote employment, and ensure sustainable public finances, aligning government resources with economic priorities. They are strategic tools used to manage economic fluctuations and support overall economic health.