It is a requirement by law for any municipality, government agency, state or the government itself to have a balanced budget. They offset it by having a 'debt allowance' due to the way the bookkeeping has to be done.
It's not a matter of accounts Rec and accounts Payable being the same in order for it to be considered 'balanced'.....it actually has to be brought to a ZERO balance.
If they see they aren't going to get to that ZERO...then there is the 'debt allowance' to offset it or fix it. As a nation....I think we are at 7 trillion or something like that. We SHOULD have enough projected trade goods and income to cover it....but I guess you never know until it's too late.
Actually, I'm a licensed City Clerk....so I do know a little about how that works. Talking about a CRAPPy job....I hated it! It's been years since I had to deal with so much red tape and aggravation.
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