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'budget reduction' is correct and usable in written English.
You might use it when discussing a decrease in spending for a company, organization, or government. For example: "The company had to implement a 10% budget reduction in order to remain profitable."
Exact(58)
The cut was equivalent to a 24% budget reduction.
Since 2010, the MoD has suffered an 8% budget reduction.
Doing nothing would leave the council insufficient time to manage a budget reduction.
The state parks will see a budget reduction of about $6 million, to $422,517,000.
First, he proposed an overall budget reduction of 3% aimed at making the organization more lean.
Weaknesses: Last year's restructuring and budget reduction reduced the team to 450 employees from 700.
The same amount of public sector managers also said they expected the budget reduction to continue in 2012.
There is also an $11 million reduction in after-school care contained in the child welfare agency's proposed budget reduction.
Mr. Giuliani's budget proposal reflected a 15-percent budget reduction to most city agencies, except uniformed forces.
The new Greek coalition government is seeking a two-year extension to 2016 for meeting a budget reduction programme.
Similar(1)
The cliff-fall mandates an additional defense-budget reduction of fifty-five billion dollannuallyannually
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com