What is Balanced Budget?

What is Balanced Budget?
Balanced budgetIt is the case when the government’s revenues are exactly equal to the government’s expenditure. This term is sometimes used in conjunction with the term “budget surplus”. However, in the modern era, this is hardly the situation of any economy.
Under the scenario of balanced budget, there is a hindrance in the economic growth of the country and also, the welfare activities are restricted. However, it does ensure financial stability and helps in avoiding wasteful expenditure.
This type of budget is suitable for bringing an economy which is almost near to the full employment level.