What is a Balanced Budget?

Lainey Hunt and Kate Jones –

Governor Siddiqui stayed late along with all of the Governor’s Cabinet to discuss the budget last night. The term “balanced budget” has been thrown around and left many wondering, what the heck does that mean? 

A balanced budget, in simplest terms, is a state in which the total expected revenues are equal to the total spending. This means that there is no deficit or surplus of funds. A deficit is when the government is spending more than they can afford. Deficits are avoided at all cost as it leads to national debt. To pay off the deficit, the government takes out loans to pay it back. Loans, if not paid back on time and in full, lead to a downward spiral.

A recent development as of yesterday: Governor Siddiqui decided to veto RSB/22-4-4 as it would be damaging financially. This veto was overturned in the Red Senate for unknown reasons. Governor Sidd was provided a bill from the Lobbyist, Dynamic Legislation 7, increasing land tax that would have a $500 million revenue benefit. This was passed after heavy amendments in the Blue House as well as the Blue Senate.