The cost of regulation refers to the overall economic impact of government regulations on businesses, individuals, and society. It includes both the direct costs of complying with regulation, such as fees, paperwork, and equipment, as well as indirect costs, such as reduced innovation, productivity, and competitiveness. Government agencies regularly estimate the cost of regulation. A regulatory budget is a policy which limits the total cost of regulations that a government agency can impose in a given period. It requires government agencies to prioritise regulations in order to stay within their budget.