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A stabilization fund is a financial reserve set up by governments or organizations to manage economic volatility and ensure fiscal stability. It typically accumulates surplus revenues during periods of economic growth, which can then be drawn upon during downturns to support public services or balance budgets. This helps mitigate the impact of fluctuating revenues, particularly in resource-dependent economies. The fund aims to provide a buffer against economic shocks and maintain consistent service levels.

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6mo ago

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