Deficit Reduction Plan

A Deficit Reduction Plan is a strategy implemented by a government to decrease its budget deficit, which occurs when its expenditures exceed its revenues. The plan may involve cutting spending, increasing taxes, or both to balance the budget over time. By reducing the deficit, the government aims to stabilize its finances, lower national debt, and foster economic growth. Such plans often face political debate, as they can affect social services and economic policies, influencing the daily lives of citizens. Ultimately, the goal is to create a healthier economy for current and future generations.