Balanced budget facts for kids

A balanced budget is a budget in which the amount of money spent is the same as the amount of money received. In general, it's a budget that has no budget deficit (spending more money than one has), but it could have a budget surplus (spending less money than one has).

Many economists argue that moving from a budget deficit to a balanced budget decreases interest rates, increases investment, shrinks trade deficits and helps the economy grow faster in the longer term.