Government finance refers to the management of a government's income and expenditures. It involves collecting revenue through taxes, fees, and other sources, which is then allocated to various public services such as education, healthcare, and infrastructure. Effective government finance ensures that resources are used efficiently to meet the needs of citizens. Budgeting is a key component of government finance, as it outlines how funds will be spent over a specific period. Governments must balance their budgets to avoid deficits, which can lead to increased debt. Proper financial management helps maintain economic stability and supports public welfare.