(1) Because judging from the practice of economic construction in socialist countries, whether there is an excessive fiscal surplus or a fiscal deficit, it will have an adverse impact on the national economy. Excessive fiscal balances will lead to unreasonable material reserves, excessive backlogs, and slowed capital turnover; deficits may lead to the issuance of fiscal currency.

(2) From the perspective of the relationship between funds and materials, it is a part of the expenditure that is not guaranteed by materials. The result will be a tight supply of materials and rising prices, which will directly affect people's living standards.

(3) Balance of fiscal revenue and expenditure means that fiscal allocation is consistent with material allocation, which is a necessary condition to ensure sustained, stable and coordinated development of the national economy.

Extended information:

1. The contradiction between fiscal revenue and expenditure is the basic contradiction in fiscal distribution. The finance of any country at any stage of economic development is faced with the problem of dealing with the relationship between the total fiscal revenue and expenditure. If a country's fiscal revenue and expenditure are roughly equal during a certain period (usually a year), we say that the country's finances are balanced. When determining whether a country or a level of government's finances are balanced, debt revenue is usually not counted within the revenue range. Correspondingly, debt repayment expenditures are also not counted within the expenditure range. According to this statistical approach, fiscal balance is relative (it is in this sense that we regard roughly equal fiscal revenue and expenditure as fiscal balance), while fiscal imbalance is absolute.

2. When determining whether a country or a first-level government's finances are balanced, debt income is usually not included in the income range. According to this statistical approach, fiscal balance is relative, while fiscal imbalance is absolute. Because it is almost impossible for a country to keep its fiscal revenue and expenditure exactly the same within a fiscal year, there will usually always be a certain amount of surplus or deficit. However, if debt income is regarded as normal income and surplus is also regarded as expenditure, then the balance of fiscal revenue and expenditure is absolute, and the imbalance is relative. This transformation between the absolute and relative nature of fiscal balance of payments shows that the distinction between fiscal balance and imbalance is relative. Therefore, when examining the issue of fiscal balance, we must choose the statistical caliber of revenue and expenditure.

3. Fiscal cycle balance means that within an economic cycle, the surplus during economic prosperity offsets the deficit during economic recession, thereby achieving balance within an economic cycle. The reason why fiscal balance is understood as cyclical balance is as follows:

1. The non-equilibrium nature of economic operation shows that it is necessary to achieve cyclical balance of fiscal revenue and expenditure.

2. It is also possible to achieve cyclical balance of fiscal revenue and expenditure. This possibility manifests itself in two aspects:

First, the national subjectivity of fiscal distribution shows that it is a special distribution category, and its revenue collection and expenditure arrangements must reflect the will of the government. Implement the country's macroeconomic policies. Since maintaining stable economic growth is one of the functional goals of the government, it is impossible for the government as the main body to choose an annual balance for fiscal allocation, but can only achieve a cyclical balance of fiscal revenue and expenditure in the process of exerting its fiscal adjustment role.

Second, economic fluctuations often manifest themselves as the alternation of economic overheating and economic recession. Therefore, there is actually the possibility that the fiscal surplus during economic overheating can offset the fiscal deficit during economic recession, thereby achieving cyclical balance. .