A balanced budget occurs when a government's revenues equal its expenditures over a specific period, typically a fiscal year. This means that the government does not spend more money than it collects, avoiding deficits. A balanced budget is often seen as a sign of fiscal responsibility and can help maintain economic stability. Governments may achieve a balanced budget through various means, such as increasing taxes, cutting spending, or a combination of both. Maintaining a balanced budget can help build public trust and ensure that essential services, like education and healthcare, are funded without relying on debt or borrowing.