Reasons for Balanced Budget - SS2 Economics Past Questions and Answers - page 1

A balanced budget helps to ensure financial stability by preventing excessive borrowing, which can lead to debt and financial turmoil. By spending only what is earned or generated in revenue, individuals, organizations, and governments can avoid financial instability and reduce the risk of bankruptcy.

A balanced budget can promote economic growth by creating a stable economic environment that is attractive to investors, leading to increased investment and job creation.