What is the primary purpose of taxation in fiscal policy?

The primary purpose of taxation in fiscal policy is to generate revenue for the government to fund public services and programs. This money is used for essential things like education, healthcare, infrastructure, and social security, which help improve the quality of life for citizens. For example, when you pay taxes, some of that money might go towards building and maintaining roads, which everyone uses to travel. Additionally, taxation helps the government manage the economy by influencing how much money is circulating; if the government raises or lowers taxes, it can encourage or slow down spending by individuals and businesses. Overall, taxation is a key tool that allows the government to support its citizens and maintain a stable economy.