Question

Explain the concept of Balanced Budget in detail.

Answer 1

A balanced budget is a situation in financial planning or the budgeting process where total revenues are equal to or greater than total expenses. A budget can be considered balanced in hindsight after a full year's worth of revenues and expenses have been incurred and recorded.

Answer 2

Answer:

A balanced budget is a budget where the revenues are equal to the expenditures.

• A balanced budget, especially a government budget, is a budget in which income is equal to expenditure. Therefore, there is no budget deficit or surplus. More specifically, it is a revenue that does not have a budget deficit, but may have a budget surplus.
• A cyclically balanced budget is a budget that is not necessarily year - to-year balanced, but balanced over the economic cycle, running a boom-year surplus and running a lean-year deficit, with those offsetting over time.