Reasons for a balanced budget.

[TOZZIBLINKZ]

By definition a budget is defined as a statement containing a government total estimate and proposed revenue in a given period of time usually a year . We all know the reasons why government makes budget , government makes budget for the purpose to allocate resources to the various sectors of an economy , government also make budget in order to Foster economic growth and development thereby controlling the rate of inflation and deflation in a particular country , this can only be accomplished if a government budget is balanced , the balanced budget is a budget which revenue equals to expenditure , in other words , balanced budget or call when the estimated total revenue of a government equal to the proposed expenditure .

You maybe asking what are the reasons why a government budget should be balanced : well there are so many reasons why a government budget should be balanced or in other words the government revenue should be equal to its expenditure one major reason include:

*. Preventing huge debt burdens : balanced budget is usually used by the government to prevent genetic or powerful debt burdens , which could make a business environment go extra mile in order to repair them to the lenders.

 

[Jasz]

The standard of a balanced budget is the main reason for most companies having this. It is an important task that every company needs to balance out. This is a technique used to control the income and expenditure of a business, so they know they can make ends meet with their financial responsibilities.

First, there are many reasons why the government may fail in their attempt at keeping a balanced budget. These reasons include unexpected expenses and difficulties in raising revenue, which can be caused by unexpected economic events. For example, if one company were to suddenly go out of business, then it would affect all other companies in the same industry by causing them to lose a big client and therefore losing money as well. This would mean that the government would have less tax income from these companies and therefore there would be more money being spent than gained.

Secondly, there are factors that need to be considered when keeping a balanced budget. The first factor is knowing what your income is going to be like over the next few years (e.g., if you sell your product overseas, then you need to know how much you will gain from it). Another factor is making sure you have enough money left over after paying all your bills (i.e., rent) or else you will go into debt and end.

 

[Kingsley]

A budget is what we prepare to aviod waste and unnecessary spending because as it is know the human needs are highly insatiable but the means to cover those needs are highly limited in supply hence people need to prepare budget in their everyday life and not only at the individual level is budget required but at the national or macro level aswel. Budgeting is indeed essential in our daily activities as without making a proper budget we are likely going to spend unwisely. Having a balance budget is what we need to ensure we do not go outside our means to cater for our needs. Because sometimes people go out of their means to satisfy their budget which is indeed very bad because it leaves us indebted.

It because imperative that when making a budget we need to always try as much as possible to aviod budget deficits. We should streamline our budget according to our income and if there is any need for us to beyond our available income then it will be wise to do that with a mindset of generating more income from what we will be borrowing. We should just have a budget deficit that will be based on consumption but for capital projects.

 

[Suba]

In theory, the government should make a balanced budget, so that the pace of the economy can be controlled, but in practice many governments prepare budget expenditures that are much larger than last year, without taking into account income, so that new money will be made, or make foreign loans, in order to fulfill expenditure budget targets.