Budget and Fiscal Policy

Budget and fiscal policy are essential tools governments use to manage economic growth, control inflation, and ensure public welfare. A public budget outlines planned revenues and expenditures, focusing on priorities like infrastructure, education, and poverty alleviation. Fiscal policy, on the other hand, adjusts government spending and taxation to influence the economy’s direction.

Key highlights include:

• Types of Fiscal Policy: Expansionary policies boost demand during recessions, while contractionary measures curb inflation during economic booms.
• Budget Components: Revenue and expenditure budgets manage income sources like taxes and spending on development and operations.
• Budget Multiplier: This concept explains how government spending sparks economic growth through a ripple effect.

Whether it’s managing unemployment or fostering equity, the synergy between budgets and fiscal policies drives sustainable development. Stay informed to understand how these strategies shape the economy and impact your financial future!