BALANCED BUDGET

Balanced Budget

Balanced Budget

Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on the size of the federal deficit?

There are many states that annually balance their budgets and allocate the specified budget to each area. A balanced budget is when the revenues obtained is constant to the expenditures or in some cases the surplus is also known as the balanced budget. When a state or country goes into recession, a financial stimulus in ...