Is fund balance the same thing as equity?

Fund balance and equity are related concepts but not exactly the same. Fund balance typically refers to the difference between a government entity's assets and liabilities, representing the net position available for future use, while equity generally pertains to ownership interest in a business, calculated as total assets minus total liabilities. In governmental accounting, fund balance is often classified into different categories, such as restricted, committed, or unassigned, to indicate the level of constraints on the use of those funds. Thus, while both represent a measure of financial health, they apply to different contexts and frameworks.