How does the budget combat the situations of "Deflation" in the economy?

Increase expenditure 

Deflation is a situation where the aggregate demand is less in the economy, so in order to increase the same expansionary policies should be adopted by the government through budget. Expansionary policies include increase in the government expenditure so that aggregate demand can rise and deflation can be controlled. If the government increases its revenue it would lead to contraction of money from economy thus not recommended. The ideal situation is increase in expenditure and decrease in revenue.