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Balanced National and Federal Budget

Taking the position of supporting a balanced national budget, the policy is essential to protect future generations from huge debts. A growing federal debt can burden future generations, causing low national savings and reduced incomes (Asatryan et al., 2018). There will be high-interest payments that could make taxes rise causing a significant cut on spending. With a substantial financial burden to manage, future generations might experience the problem of responding to emerging problems and economic issues such as lack of funds. Hence, a balanced national budget must be encouraged aiming to protect the future. Although a balanced budget has the gain of protecting the future and promoting growth, this will result in losses in the economy because policymakers would be forced to reduce spending. (Dosi et al., 2019). Additionally, there might be a need to cut social security and other programs such as Medicare, which is hurting citizens. Additionally, interest rates charges from huge loaners or lenders could be saved.

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Taking the position of supporting a balanced federal budget, the approach is vital to help end unhelpful programs acquired in the past. Government budgets such as capital investments would need to be balanced annually while considering future outcomes (Mikesell, 2018). A balanced federal budget ensures the government does not spend excessively and allows concentration or allocation of funds in areas that are needed most (Yushkova et al., 2016). On the contrary, there is legitimate borrowing at the federal level, for example, to support infrastructure, which helps boost future growth. Additionally, it might be noted that a balanced federal budget might lead to an undercut on social security and other government guarantees. The US government should learn to accept deficits, for instance, in the national emergency time but later ensures revenues generated are higher enough to offset the financial burden caused (Veynbender & Fadeeva, 2019). A federal budget is an important policy tool for the government to reflect on economic decisions.


Asatryan, Z., Castellón, C., & Stratmann, T. (2018). Balanced budget rules and fiscal outcomes: Evidence from historical constitutions. Journal of Public Economics, 167, 105-119. Web.

Dosi, C., Moretto, M., & Tamborini, R. (2019). Balanced-budget fiscal stimuli of investment and welfare value. Institute-Leibniz Institute for Economic Research at the University of Munich. Web.

Mikesell, J. L. (2018). Fiscal administration: Analysis and applications for the public sector (10th ed.). Wadsworth.

Veynbender, T., & Fadeeva, A. (2019). State Budgets and Leading Approaches for Balanced State Finance. In Sustainable Leadership for Entrepreneurs and Academics (pp. 183-189). Springer.

Yushkova, O. O., Kirina, L. S., Malis, N. I., Mandroshchenko, O. V., & Nazarova, N. A. (2018). Tax revenues and balanced budgets. European Research Studies Journal, 16, 675-685. Web.

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