Canon of Balanced Income and Expenditure
According to this canon, there should be a balance in the income and expenditure of the government. At a normal point in time, the government budget should neither face surplus nor deficit. In the case of a surplus situation, the government must be spending less as compared to what it should be spending. On the contrary, in case of a deficit, the government must be spending more as compared to what it should be spending. From this point of view, the government should try to maintain a balance between its income and expenditure.
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