What does the Texas Constitution require the state for its finances?

The Texas Constitution mandates that the state government operates under a balanced budget, which means that the expenditures cannot exceed the estimated revenues for a given fiscal period. This requirement is crucial as it ensures that the state does not spend more than it earns, helping to promote fiscal responsibility and stability. By enforcing a balanced budget, Texas aims to avoid excessive debt accumulation and maintain a healthy financial outlook for future years. This principle is foundational to sound state financial management and aligns with the broader goals of transparency and accountability in government fiscal practices.