The objective of not spending more money than the government takes in is called a balanced budget. A budget is balanced when planned government revenue equals planned government spending over a stated accounting period.
Governments usually raise revenue through taxes, fees, investment income and other sources. They spend money on areas such as public services, infrastructure, pensions, defence and debt interest. If spending exceeds revenue, the result is a budget deficit; if revenue exceeds spending, it is a budget surplus.
A balanced budget does not mean that the government has no debt. A country can balance its new annual budget while still owing money borrowed in previous years. The phrase is also different from a constitutional balanced-budget requirement, which is a legal rule restricting deficits. Economists debate whether balancing the budget every year is desirable, since borrowing can sometimes support emergency relief or long-term investment.