Explain the role of government revenue in balancing a budget and providing public services.

After state governments have ensured that all government expenditures for providing public services are funded through taxes and other sources, the excess funds left over at the end of each year are distributed throughout the population in the form of government revenue payments to individuals and businesses.

Ideally, governments seek to maintain a budget where the government brings in more money than it spends on government expenditures to receive government revenue, the surplus of funds after all public services have been provided.

Some state governments are unable to balance their budget, and the money the government receives from taxes is insufficient to account for all government expenditures and to provide public services. Therefore, governments will seek to acquire government revenue, which are distributions from the federal government.

Every government must generate enough government revenue through taxes and other sources to account for government expenditures and maintain a balanced budget to meet the needs of the people by providing public services.