Budgetary policy refers to government attempts to run a budget in equity or in surplus. The aim is to reduce the

public debt A country's gross government debt (also called public debt or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit occu ...

. It is not the same as a

fiscal policy In economics and political science, fiscal policy is the use of government revenue collection ( taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variab ...

, which deals with the fiscal stimulus to the economy, the repartition of taxes and the generosity of allowances. It is the policy which governments adopt while formulating budget. It helps in shaping the form or structure of budget. Macroeconomics dictates that both fiscal and budgetary policy are utilized together to achieve

economic stability Economic stability is the absence of excessive fluctuations in the macroeconomy. An economy with fairly constant output growth and low and stable inflation would be considered economically stable. An economy with frequent large recessions, a pronou ...

.It has 3 type's: deficit policy, balanced policy, surplus policy.

References

Government budgets {{econ-stub