Balanced Budget


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.


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BREAKING DOWN '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.

  1. Budget Deficit

    A status of financial health in which expenditures exceed revenue. ...
  2. Budget Surplus

    A situation in which income exceeds expenditures. The term "budget ...
  3. Budget Committee

    A group of people that creates and maintains fiscal responsibility ...
  4. Discretionary Expense

    A discretionary expense is a cost which is not essential for ...
  5. Performance Budget

    A budget that reflects the input of resources and the output ...
  6. Activity-Based Budgeting - ABB

    A method of budgeting in which the activities that incur costs ...
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  1. Why would a company choose to operate on a deficit budget in lieu of a balanced budget?

    The terms budget deficit and balanced budget refer to an entity's expenditures compared to its revenues during a budget period. ... Read Full Answer >>
  2. How much money does Florida make from unclaimed property each year?

    Each year, goods such as money, financial investments and physical property are either auctioned off or appraised before ... Read Full Answer >>
  3. How much money does New York make from unclaimed property each year?

    According to the Office of the New York State Comptroller, types of unclaimed property accounts include bank accounts, wages, ... Read Full Answer >>
  4. What is the Social Security administration responsible for?

    The main responsibility of the U.S. Social Security Administration, or SSA, is overseeing the country's Social Security program. ... Read Full Answer >>
  5. Where are the Social Security administration headquarters?

    The U.S. Social Security Administration, or SSA, is headquartered in Woodlawn, Maryland, a suburb just outside of Baltimore. ... Read Full Answer >>
  6. How soon should I start saving for retirement?

    The best answer to the question, "How soon should I start saving for retirement?", is probably, "yesterday," and the second ... Read Full Answer >>

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