What describes a situation where total government revenues equal total expenditures for the year?

A situation where total government revenues equal total expenditures for the year is referred to as a balanced budget. This concept indicates that the government is not borrowing funds or accumulating debt, as its income from taxes and other sources adequately covers its spending. A balanced budget reflects financial stability, where the government effectively manages its resources without overspending or having excess revenues leading to surpluses.

In contrast, other answers describe different fiscal situations: a budget surplus occurs when revenues exceed expenditures, suggesting the government has excess funds, while a budget deficit indicates that expenditures surpass revenues, leading to borrowing and potential increases in national debt. National debt is the cumulative amount of money that the government owes as a result of past deficits.