Governments in low-income countries face challenges in deciding how to spend money to help reduce poverty. They need to balance spending, taxes, and borrowing to keep debt low, boost the economy, and help the poor. It's hard because private businesses often fail, governments may not work well, raising money is tough, and data is lacking. Despite these challenges, the budget is a key tool for fighting poverty. Understanding how public money can be used effectively to help the poor is important for policymakers and aid providers. The article discusses why governments in developing countries struggle with fiscal policies and how public funds can be used to benefit the poor.