During times of economic or financial crisis, the government also loses revenue and faces pressure to lower tax burdens.
In the case of a loss of profit or tax revenue, the budget may need to be cut or frozen so that a company or a government does not spend more than its intake.
In government, a politician may implement a budget freeze to lower the amount of money spent on programs or wages, thus allowing a decrease in taxes.
In the United States, School districts have frozen teachers' pay without providing cost of living increases.
Budget freezes can also increase the amount of money students need to pay for education, possibly decreasing the likelihood of attending college.
During his presidency, former United States President George W. Bush proposed many budget freezes in order to alleviate economic problems, including freezes on the United States Department of Education,[2] domestic programs such as health care,[3] the U.S. Department of Health and Human Services, and the National Science Foundation.
This proposal caused difficulties for Congress, especially among Democrats, as the budget cuts would force some programs to reduce contributions because of population growth and inflation and many claimed that Bush wanted to take credit for the cuts while forcing Congress to make all of the difficult decisions.