balance budget

What Is Budget Balance?

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What Is Budget Balance? Fiscal Balance (% of GDP) Fiscal balance, sometimes also referred to as government budget balance, is calculated as the difference between a government’s revenues (taxes and proceeds from asset sales) and its expenditures. It is often expressed as a ratio of Gross Domestic Product (GDP). What is the budget balance equal

Are The Business Cycle And The Budget Balence Related?

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Are The Business Cycle And The Budget Balence Related? Governments’ budget balances fluctuate with the business cycle and this requires computing a cyclically adjusted balance (CAB). What effect does the business cycle in the economy have on government budget balance? For example, during recessions, the budget deficit tends to increase because of the automatic stabilizers