In this Fact sheet, we explain the mainstream economic perspective on a balanced budget, present the conservative talking points for a balanced budget and discuss ways to respond to the conservative talking points.
Definitions
- Balanced budget: a budget in which revenues are equal to expenditures, e.g., no deficit or a surplus
- Cyclically balanced budget: a budget that is balanced over the economic cycle, running a surplus in boom years and a deficit in lean years, with these offsetting over time