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What is the equation to calculate government budget balance?

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Combining the two equations together gives you the budget balance equation by isolating the government budget term [math](G - T)[/math] (expenses minus income). You should find that [math](G-T) = (S-I) - (X-M)[/math], which means the government excess money is savings minus investments, minus net exports. read more

The United States federal budget for financial 1913 and 1914 is a good example of balanced budget. In financial year 1913 the government's expenditures amounted to $715 million while its income was $714 million. read more

Budget deficit is an important phenomena in fiscal policy. When an economy is in recession, the government usually runs a budget deficit in order to boost the economy. Budget surplus is a situation opposite to a budget deficit i.e. in a budget surplus, a government's income exceeds its total expenditures. read more

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