A budget is balanced when expected total revenue is

Answer Details

A balanced budget is one in which the government's expected (planned) total revenue is equal to its expected expenditure. In this scenario, the government plans to spend exactly as much as it expects to collect, resulting in neither a surplus nor a deficit.

If expected revenue is less than total expenditure, the budget is in deficit. If expected revenue is greater than total expenditure, the budget is in surplus. The option stating "greater than expected expenditure" is essentially the same as a surplus, not a balanced position.

The word "expected" is important here. A budget is a plan or projection for a future fiscal period. At the time the budget is drawn up, both revenue and expenditure are estimates. A balanced budget means these two estimates are set equal to each other. Actual outcomes may differ, but the budget itself is balanced when the planned figures match.