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

Decrease expenditure and increase revenue

Inflation is a situation where the aggregate demand is more in the economy, so in order to decrease the same contractionary policies should be adopted by the government through budget. Contractionary policies include decrease in the government expenditure so that aggregate demand can fall and inflation can be controlled. If the government decreases its revenue it would lead to injection of money in the economy thus not recommended. The ideal situation is decrease in expenditure and increase in revenue.