Budgetary Policy

Budgetary policy refers to the government's plan for how it will collect and spend money over a specific period, usually a year. It outlines sources of revenue, like taxes, and expenditures on services and projects, such as education and infrastructure. This policy aims to manage the economy by influencing overall economic activity, controlling inflation, and addressing public needs. A balanced budget means income equals spending, while a deficit occurs when spending exceeds income. Effective budgetary policy helps ensure financial stability and promotes economic growth by efficiently allocating resources to various sectors.