ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A balanced budget occurs when revenues are equal to or greater than total expenses. A budget can be considered balanced after a full year of revenues and expenses have been incurred and recorded. Proponents of a balanced budget argue that budget deficits burden future generations with debt.

Detailed explanation-2: -Planning a balanced budget helps governments to avoid excessive spending and allows them to focus funds on areas and services that require them the most.

Detailed explanation-3: -A balanced budget occurs when an organization’s revenues either meet or exceed its projected expenses in a given financial cycle. This is usually based on the fiscal or calendar year depending on the organization’s accounting policy.

Detailed explanation-4: -A positive balance is called a government budget surplus, and a negative balance is a government budget deficit. A government budget is a financial statement presenting the government’s proposed revenues and spending for a financial year.