What describes a budget where government spending equals its income?

A budget where government spending equals its income is described as a balanced economy. In a balanced budget, the income generated through revenues, such as taxes, is equal to the expenditures made by the government, ensuring that it does not spend more than it earns. This fiscal discipline is important for maintaining economic stability, avoiding excessive debt, and promoting sustainable financial practices.

A balanced economy typically reflects sound financial management, allowing for the possibility of funding essential services and projects without incurring additional debt. This approach can foster public trust in government financial practices and contribute to overall economic health, as it minimizes the risk of financial shortfalls that can lead to borrowing or other fiscal challenges.