ABSTRACT
Budgets are generally considered to be in balance when an organization's inflow of economic resources is equal to its outflow of economic resources. When an organization allocates resources beyond those currently available, a deficit occurs and additional resources must be collected in future periods reducing future opportunities. In its simplest form, budgetary balance is expressed by the budgetary equation: Revenues = Expenditures In a neat and tidy world, this equation would serve us well; however, in the real world, the equation is seldom as simple as it appears.
