The proposed amendment aims to require the federal government to maintain a balanced budget, limiting yearly expenditures to the average annual receipts from the previous three years, adjusted for inflation and population changes. However, Congress may exceed this limit through a two-thirds vote in certain situations, such as specific expenditures or during a declared war. Additionally, any new tax or tax rate increase would require a two-thirds vote in both Houses to become law. The enforcement and implementation of this amendment would be carried out through appropriate legislation, and it would take effect five years after ratification.