What is the difference between balanced budget and unbalanced budget?

A budget in which revenues equals expenditures for the year. An unbalanced budget is one where the total anticipated revenues are not equal to the estimated expenditures. Total Revenues = Total Expenditures. (It is otherwise also referred to as balanced budget formula).

What is a balanced budget?

A balanced budget refers to a financial situation in which revenue is equal to or greater than expenses. The term can be applied to a range of situations though it's commonly used in the context of government budgeting. Proponents of a balanced budget argue that spending that is greater than revenue can be fiscally damaging.

How do you calculate a balanced budget?

Total Revenues = Total Expenditures. (It is otherwise also referred to as balanced budget formula). An unbalanced budget is represented as either total revenues > total expenditures or total revenues < total expenditures. A budget that is balanced has inflows and outflows that are equal.