Most state and local governments are required by law to balance their budget annually while the federal government is not required to attain a balanced budget each year.

Question

Quizplus · Accepted Answer

Most state and local governments in the United States are indeed required by law to have a balanced budget, meaning they cannot spend more than their income. However, the federal government does not have such a requirement and can run a deficit, spending more than it earns in a given year.

Most State and Local Governments Are Required by Law to Balance