Which of the following best describes a structurally balanced budget?

A structurally balanced budget is characterized by revenues consistently matching recurring expenditures over time. This means that the government or organization is able to fund its ongoing operational costs, such as salaries, supplies, and services, without relying on one-time revenues or borrowing.

Pursuing this balance is crucial because it indicates fiscal sustainability. When revenues align with recurring expenditures, it allows for a more predictable financial environment, ensuring that public services can be maintained without deficit spending. This alignment is essential for maintaining confidence among stakeholders—such as taxpayers and investors—in the entity's financial health.

Other options describe scenarios that do not reflect structural balance. For instance, having revenues exceed total expenditures can create a surplus, but it does not necessarily imply that ongoing operations are funded sustainably. A budget where expenditures are fixed without regard to revenue ignores fiscal realities and may lead to unmanageable deficits. Lastly, focusing solely on capital expenditures overlooks the importance of funding day-to-day operational costs, which are critical for maintaining ongoing services and programs.