Question

In a balanced budget, the amount you ______ is ______ the amount you earn.

Answer 1

In a balanced budget, the amount you enter is the same as the amount you earn. If the expected income and expenses coincide, the budget will be balanced. When the expenses are higher than the income there is a budget deficit. The opposite situation, with income higher than expenses, is the surplus. If the expected income and expenses coincide, the budget will be balanced.

Answer 2

If the amount you spend is equal to the amount you earn, it is considered as a balance budget. In financial planning, a balance budget is defined as a budgeting process in which total income is equal to or greater than the total expenditures. It means that, after a full year, income and expenses incurred and recorded, there is no budget deficit, but generally a surplus in the budget may exist.