budgetary policies

Budgetary policies are strategies used by governments to manage public finances, influencing how money is collected and spent. This includes decisions on taxation, government spending programs, and borrowing. The goal is to maintain economic stability, support growth, and provide public services. A balanced budget aims to match expenditures with revenues, while a deficit budget means spending more than is earned. These policies can affect inflation, employment, and the overall economy, impacting citizens' daily lives through changes in taxes, social services, and infrastructure investments. Effective budgetary policies are crucial for sustainable economic health.