Meaning of Balanced Budget - SS2 Economics Lesson Note

A balanced budget refers to a situation where a government, organization, or individual spends only as much as they earn or receive in income or revenue. In other words, a balanced budget means that expenses are equal to or less than the income or revenue generated within a specific period, such as a month, year, or quarter.

In the context of a government, a balanced budget is achieved when the total amount of revenue or taxes collected is equal to or greater than the amount of money spent on various government programs and services. This means that the government is not running a deficit, which is when expenses exceed revenue and lead to a negative balance.