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What is an example of a balanced budget?

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nvbobba | eNotes Newbie

Posted May 6, 2013 at 10:26 PM via web

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What is an example of a balanced budget?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted May 6, 2013 at 10:56 PM (Answer #1)

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I wonder if perhaps you might give us a few more details as to what you want here.  I will discuss a balanced budget in general terms and give a few examples, but I am not sure if that is exactly what you want.

A balanced budget is any budget in which the amount of money that someone receives in a year is at least equal to the amount of money that they spend in that year.  Families and businesses typically balance their budgets from year to year.  When we talk of a balanced budget, however, we usually are talking about the government.

Most state constitutions require that their budgets be balanced every year.  The federal government has no such requirement.  In the last 40 years or so, the federal government has only balanced its budget for a few years in the 1990s.  What this means is that the federal government spends more than it takes in in the form of tax revenues.   So, an example of a balanced budget for the US as a whole would be any of President Clinton’s last four budgets.

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