Balanced budget
A balanced budget is a budget in which receipts equal (or exceed) outlays. Fiscal conservatives, such as George H. W. Bush favor balanced budgets, while more liberal polticians do not.[1] In the United States, every state except Vermont have laws that require a balanced budget[2] and most local governments are also required to balance their budgets.[3] The Federal Government has no such requirement and may incur a budget deficit.
There are conservatives, such as Bruce Bartlett (a former domestic policy adviser to President Reagan), who oppose a Federal balanced budget. Bartlett argues that a balanced budget amendment would be nearly impossible to enforce and that forcing a balanced budget in times of economic downturns would worsen the economy.[4]
References
- â [1] US Senate Reference
- â National Conference of State Legislatures. "State Balanced Budget Provisions." [2]
- â "State and local balanced budget requirements." Clear on Money. [3]
- â Bartlett, Bruce. "Balanced Budget Amendment a 'Phony' Deficit Solution." The Fiscal Times, 27 August, 2010. [4]