Balanced Budget

Dictionary Says

Definition of 'Balanced Budget'

A situation in financial planning or the budgeting process where total revenues are equal to or greater than total expenses. A budget can be considered balanced in hindsight, after a full year's worth of revenues and expenses have been incurred and recorded; a company's operating budget for an upcoming year can also be called balanced based on predictions or estimates. 

Investopedia Says

Investopedia explains 'Balanced Budget'

The phrase "balanced budget" is commonly used in reference to official government budgets. For example, governments may issue a press release stating that they have a balanced budget for the upcoming fiscal year, or politicians may campaign on a promise to balance the budget once in office.

It is important to understand that the phrase "balanced budget" can refer to either a situation where revenues equal expenses or where revenues exceed expenses, but not where expenses exceed revenues.

Related Video for 'Balanced Budget'

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Budget

    An estimation of ...
  2. Activity-Based Budgeting - ABB

    A method of ...
  3. Zero-Based Budgeting - ZBB

    A method of ...
  4. Static Budget

    A type of budget ...
  5. Cash Budget

    An estimation of ...
  6. Performance Budget

    A budget that ...
  7. Budget Surplus

    A situation in ...
  8. Discretionary Expense

    A discretionary ...
  9. Budget Deficit

    A financial ...
  10. Budget Committee

    A group of ...

Articles Of Interest

  1. Run Your Personal Finances Like A Business

    The principles that contribute to success in business can also help you achieve your financial goals.
  2. A Look At Government Bonds And National Debt

    Learn the functions of the U.S. Treasury, and find out how and why it issues debt.
  3. The Beauty Of Budgeting

    Make it to the end of the month, before you run out of money.
  4. 6 Months To A Better Budget

    Can you have perfect abs in just six minutes a day? Maybe not, but you can have a rock-solid budget in six months.
  5. Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.
  6. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  7. 5 Ways To Stretch Your Retirement Budget

    Living comfortably can be easy if you follow a simple plan.
  8. A Pre-Retirement Checkup

    Are you on track to post-work bliss? We'll tell you how to find out.
  9. Earn A Holiday Bonus Through Energy Savings

    You can enjoy the festive season without a jolly increase in your energy costs. We'll show you how.
  10. Tips For Avoiding A Holiday Spending Hangover

    You don't have to go into debt to have a happy and memorable holiday season. Use these tips for a bountiful Yuletide on a Scrooge-like budget.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center