Question

A government budget should not always be balanced.

• A. True
• B. False

Answer 1

The correct option is A True

A government budget is an annual financial statement which outlines the estimated government expenditure and expected government receipts or revenues for the forthcoming fiscal year. A balanced budget for the Government generally means the difference between government incomes and expenses over an accounting period of one year. The government’s budget should not always be required nor should that be the goal because there are too many variable. If the existing condition or the environment is not right it could do more harm to a bad situation than help. The only way for the government to balance the budget is to increase taxes or and reduce spending, the consequences to anyone of those options are not favorable for the people and or businesses.