The Government budget balance, also commonly referred to as general government balance, public budget balance, or public fiscal balance, is the overall result of a country's general government budget over the course of an accounting period, usually one year. It includes all government levels (from national to local) and public social security funds. The budget balance is the difference between government revenues (e.g., tax) and spending. A positive balance is called a government budget surplus, and a negative balance is called a government budget deficit.
The government budget balance is used to assess the fiscal health of a country. It is further differentiated by closely related terms such as primary balance and structural balance (also known as cyclically-adjusted balance) of the general government. The primary budget balance equals the government budget balance before interest payments. The structural budget balances attempts to adjust for the impacts of the real GDP changes in the national economy. Keynesian economics advocates a government budget deficit during recession or downturn as long as it is limited enough to render the structural government budget balance positive.
Read more about Government Budget Balance: Primary Deficit, Total Deficit, and Debt, Structural Deficits, Cyclical Deficits, and The Fiscal Gap, Early Deficits, Deficit Spending
Famous quotes containing the words government, budget and/or balance:
“[T]he people seem to have deposited the monarchical and taken up the republican government with as much ease as would have attended their throwing off an old and putting on a new suit of clothes.”
—Thomas Jefferson (1743–1826)
“The United States is the only great nation whose government is operated without a budget. The fact is to be the more striking when it is considered that budgets and budget procedures are the outgrowth of democratic doctrines and have an important part in developing the modern constitutional rights.... The constitutional purpose of a budget is to make government responsive to public opinion and responsible for its acts.”
—William Howard Taft (1857–1930)
“The hero is a mind of such balance that no disturbances can shake his will, but pleasantly, and, as it were, merrily, he advances to his own music, alike in frightful alarms and in the tipsy mirth of universal dissoluteness.”
—Ralph Waldo Emerson (1803–1882)