Budgeting and fiscal policy

Budgeting involves planning how a government allocates its financial resources, deciding how much to spend and where to generate revenue, mostly through taxes. Fiscal policy refers to these decisions to influence the economy—by increasing spending or cutting taxes to stimulate growth, or reducing spending and raising taxes to control inflation. Together, they help manage economic stability, promote growth, and ensure government programs are funded responsibly. Effective budgeting and fiscal policy are crucial tools for maintaining a healthy economy and addressing public needs.