A balanced budget occurs when government

Question

Quizplus · Accepted Answer

A balanced budget occurs when the government's total expected tax revenue for the year is equal to its planned spending on programs, services, and infrastructure. In other words, tax revenues equal outlays. This means that the government is not adding to its debt or deficit, but is able to fund its activities without overspending. Option A is incorrect as it describes a deficit or a shortfall in revenue. Option C would be a surplus, which is not necessarily the same as a balanced budget. Finally, option D does not take into account any revenue or spending.

A Balanced Budget Occurs When Government