The Government's Charter for Budget Responsibility has passed the Commons 320 to 258, majority 62, following days of bitter rows in Labour's ranks over whether to oppose the plan.
A total of 20 Labour MPs abstained from the vote.
George Osborne has encouraged Labour MPs to rebel against leader Jeremy Corbyn and back the Conservatives' economic plans.
In an appeal ahead of a crunch Commons vote on the government's updated Charter of Responsibility, the Chancellor urged "moderate, progressive Labour MPs to defy their leadership and join with us to vote for economic sanity".
Labour has faced a difficult week after his shadow chancellor John McDonnell announced the party's official stance would be to oppose the policy - which ties future administrations to running a budget surplus.
The statement came just two weeks after Mr McDonnell had said the party would back it - with the u-turn prompting angry criticism from his own MPs.
Before the charter debate, Mr Corbyn will face David Cameron in his second Prime Minister's Questions since becoming Labour leader.
Some Corbynistas may be cross that 20 Labour MPs abstained in the fiscal charter vote, but is it really worth the abuse and party disunity?
MPs are set to vote on the Conservative's economic plan which caused clashes within Labour after a u-turn by the shadow Chancellor.
It comes after shadow chancellor John McDonnell made a surprise U-turn on the Tory budget vote which is due later today.