Step 1: Understand what a budget is. A budget is a plan that shows how much money is coming in (revenues) and how much is being spent (expenditures).
Step 2: Know what revenues are. Revenues are the money the government collects, like taxes.
Step 3: Know what expenditures are. Expenditures are the money the government spends on things like schools, roads, and salaries.
Step 4: Learn what a balanced budget means. A balanced budget means that the total money coming in (revenues) is the same as the total money going out (expenditures).
Step 5: Understand the importance of a balanced budget. It shows that the government is managing its money wisely and not spending more than it earns.
