Government Budget Balance Defined

Steps:

• Define budget balance as revenues matching expenditures in a fiscal period.
• Identify key components: revenues from taxes and fees, expenditures on public services.
• Compare options to this definition to eliminate mismatches.
• Select the option aligning with equality of income and spending.

Why C is correct:

• A balanced budget occurs when total government revenues (income) equal total expenditures, per standard fiscal policy definitions.

Why the others are wrong:

• A: Equal taxation describes uniform tax policy, not budget balance.
• B: Even regional growth relates to economic equity, not fiscal accounting.
• D: Equal exports and imports define trade balance, not government budget.

Final answer: C