balanced budget

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balanced budget

A city council reviews a chart showing a balanced budget.

Definition

Noun: A budget, typically for a government or organization, in which total planned expenditures are equal to total expected revenues for a given period. There is no deficit (spending exceeding revenue) and no surplus (revenue exceeding spending).

Usage

The term is primarily used in economics, public policy, and government finance to describe a state of fiscal equilibrium.

Examples: * The mayor promised to deliver a balanced budget this fiscal year. * Many states have laws requiring a balanced budget. * Achieving a balanced budget often requires difficult choices between spending cuts and tax increases.

Advanced Usage
  • Conceptually: The principle of a balanced budget is often debated. Some economists argue it is essential for long-term stability, while others believe strategic deficits can be useful for stimulating growth during recessions.
  • "Balanced budget amendment": A proposed law, often discussed in the context of a national constitution, that would legally require the government to operate with a balanced budget.
Variants and Related Words
  • Budget deficit (n): The amount by which spending exceeds revenue over a particular period.
  • Budget surplus (n): The amount by which revenue exceeds spending over a particular period.
  • Fiscal balance (n): A broader term for the state of government finances, encompassing deficits, surpluses, and balanced budgets.
Synonyms
  • Fiscal equilibrium (n)
  • Neutral budget (n)
Related Phrases
  • To balance the budget: The action of making expenditures equal to receipts.
    • Example: The council worked for months to find a way to balance the budget.
balanced budget

A city council reviews a chart showing a balanced budget.

Noun
  1. a budget is balanced when current expenditures are equal to receipts