A Balanced Budget is that budget in which Government receipts are equal to Government expenditure.
Merits of the Balanced Budget
The Government does not indulge in wasteful expenditure.
Interference in economic functioning of the system is totally avoided by the government generally.
Financial stability is ensured with balanced budget.
However, balanced budget is not an achievement of the government when economy is in a state of depression for at that time, government is expected to increase its expenditure with a view to increasing aggregate demand.
Demerits of a Balanced Budget
Balanced budget does not offer any solution to the problem ....
