Balanced Budget Amendment
A Balanced Budget Amendment (BBA) is a proposed constitutional rule that would require the government's spending to equal its revenue. In simpler terms, it means that the government cannot spend more money than it brings in through taxes and other income. This aims to prevent excessive national debt and promote fiscal responsibility. If implemented, it would limit the government's ability to run deficits, which are often seen as necessary during economic downturns for stimulating growth. However, critics argue that a BBA could hinder the government's flexibility to respond to crises and invest in important programs.
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A balanced budget amendment is a rule that requires a government to ensure its spending does not exceed its income. In other words, it means the government cannot spend more money than it earns in revenues, like taxes. The aim is to promote fiscal responsibility and prevent excessive debt accumulation. If implemented, this amendment would limit the government's ability to borrow money, forcing it to prioritize budgetary decisions and encourage efficient use of resources. Critics argue it could hinder the government's ability to respond to economic crises, while supporters believe it would encourage long-term economic stability.