**Interest rates** significantly influence government policy-making by affecting economic activity, investment, and public spending. Central banks adjust interest rates to control inflation and stimulate the economy. Lower rates typically encourage borrowing and spending, while higher rates may curb inflation by discouraging excessive borrowing. Policymakers consider these rates when formulating budgets, fiscal policies, and social programs. Consequently, interest rates can impact everything from **infrastructure investments** to education funding, shaping a nation’s economic landscape and influencing overall **development** and stability.