Balanced Budget

​

A balanced budget is a budget where revenues equal expenditures during a fiscal year.

 

Balanced Budget Formulas

 

Revenues = Expenditures

 

or

 

Revenues - Expenditures = $0

 

Example:

 

Politicians regularly discuss balancing the budget. Unfortunately, in order to balance the budget Congress would need to stop borrowing money and then decrease spending and/or increase revenue. This would require an enormous adjustment as the U.S. borrows approximately $1 million per min.