What must the anticipated revenues equal in a municipal budget?

The anticipated revenues in a municipal budget must equal the total appropriations to ensure that the municipality operates within its financial means. This principle is rooted in sound budgeting practices and fiscal responsibility. By aligning anticipated revenues with total appropriations, the municipality ensures that it has sufficiently planned for its expenditures without overestimating its income. This creates a balanced budget, which is often a legal requirement in many jurisdictions, including New Jersey.

Establishing a budget in this manner helps to maintain financial stability and protect against potential deficits. If revenues are miscalculated or expenditures are excessive, the municipality could face financial difficulties, compromising its ability to provide essential services or meet obligations.

While total liabilities, operating expenses, and emergency fund requirements are important considerations in the broader context of municipal finance, they do not directly determine the relationship between anticipated revenues and total appropriations as the correct option does. Balancing these two elements is fundamental for effective municipal budget management.