<PAGE> PAGE 1
000 B000000 12/31/97
000 C000000 0000889519
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 VANGUARD BALANCED INDEX FUND, INC.
001 B000000 811-7023
001 C000000 6106691000
002 A000000 100 VANGUARD BOULEVARD
002 B000000 MALVERN
002 C000000 PA
002 D010000 19355
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
014 A000001 VANGUARD MARKETING CORPORATION
014 B000001 8-21570
018 000000 Y
019 A000000 Y
019 B000000 94
019 C000000 VANGUARDGR
020 A000001 INSTINET CORPORATION
020 B000001 13-3443395
020 C000001 31
020 A000002 BEAR, STEARNS & CO., INC.
020 B000002 13-3299429
020 C000002 24
020 A000003 INVESTMENT TECHNOLOGY GROUP, INC.
020 B000003 95-4339369
020 C000003 13
020 A000004 PAINEWEBBER INCORPORATED
020 B000004 13-2638166
020 C000004 2
020 A000005 CANTOR FITZGERALD & CO.
020 B000005 13-3680184
020 C000005 1
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 71
022 A000001 THE VANGUARD GROUP, INC./POOLED CASH ACCOUNT
022 B000001 23-1945930
<PAGE> PAGE 2
022 C000001 305610
022 D000001 285775
022 A000002 BEAR, STEARNS & CO., INC.
022 B000002 13-3299429
022 C000002 80498
022 D000002 51745
022 A000003 BARCLAYS DE ZOETE WEDD SECURITIES INC.
022 B000003 13-3551367
022 C000003 57917
022 D000003 27890
022 A000004 LEHMAN GOVERNMENT SECURITIES INC.
022 B000004 13-2726611
022 C000004 55948
022 D000004 29102
022 A000005 GREENWICH CAPITAL MARKETS, INC.
022 B000005 13-3172275
022 C000005 35496
022 D000005 40089
022 A000006 MERRILL LYNCH PIERCE FENNER & SMITH
022 B000006 13-5674085
022 C000006 19678
022 D000006 511
022 A000007 PAINEWEBBER INCORPORATED
022 B000007 13-2638166
022 C000007 16139
022 D000007 2310
022 A000008 MORGAN STANLEY & CO., INC.
022 B000008 13-2655998
022 C000008 13134
022 D000008 393
022 A000009 NATIONSBANC CAPITAL MARKETS
022 B000009 56-1684171
022 C000009 12005
022 D000009 0
022 A000010 SMITH BARNEY/SALOMON
022 B000010 13-1912900
022 C000010 7278
022 D000010 3148
023 C000000 658494
023 D000000 460700
028 A010000 28664
028 A020000 0
028 A030000 0
028 A040000 15711
028 B010000 28464
028 B020000 0
028 B030000 0
028 B040000 10555
028 C010000 30652
028 C020000 6472
028 C030000 0
<PAGE> PAGE 3
028 C040000 10757
028 D010000 51354
028 D020000 0
028 D030000 0
028 D040000 12309
028 E010000 24121
028 E020000 0
028 E030000 0
028 E040000 10540
028 F010000 46505
028 F020000 21370
028 F030000 0
028 F040000 12704
028 G010000 209760
028 G020000 27842
028 G030000 0
028 G040000 72576
028 H000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
071 A000000 462344
071 B000000 180550
071 C000000 993766
071 D000000 18
072 A000000 12
072 B000000 29258
072 C000000 9415
072 D000000 0
072 E000000 0
072 F000000 80
072 G000000 575
072 H000000 0
072 I000000 876
072 J000000 105
072 K000000 0
<PAGE> PAGE 4
072 L000000 64
072 M000000 2
072 N000000 0
072 O000000 76
072 P000000 0
072 Q000000 0
072 R000000 8
072 S000000 0
072 T000000 264
072 U000000 0
072 V000000 9
072 W000000 0
072 X000000 2059
072 Y000000 0
072 Z000000 36614
072AA000000 12753
072BB000000 2803
072CC010000 157724
072CC020000 0
072DD010000 37368
072DD020000 0
072EE000000 10005
073 A010000 0.5300
073 A020000 0.0000
073 B000000 0.1450
073 C000000 0.0000
074 A000000 0
074 B000000 43862
074 C000000 4315
074 D000000 495239
074 E000000 0
074 F000000 723868
074 G000000 0
074 H000000 0
074 I000000 80
074 J000000 12515
074 K000000 0
074 L000000 10802
074 M000000 0
074 N000000 1290681
074 O000000 21968
074 P000000 331
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 7996
074 S000000 0
074 T000000 1260386
074 U010000 77357
074 U020000 0
<PAGE> PAGE 5
074 V010000 16.29
074 V020000 0.00
074 W000000 0.0000
074 X000000 38883
074 Y000000 1696
075 A000000 0
075 B000000 1028643
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 300000
081 A000000 Y
081 B000000 108
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
SIGNATURE GARY P. SOURA
TITLE MANAGER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000889519
<NAME> VANGUARD BALANCED INDEX FUND, INC.
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 972983
<INVESTMENTS-AT-VALUE> 1267284
<RECEIVABLES> 23317
<ASSETS-OTHER> 80
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1290681
<PAYABLE-FOR-SECURITIES> 21968
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8327
<TOTAL-LIABILITIES> 30295
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 964013
<SHARES-COMMON-STOCK> 77357
<SHARES-COMMON-PRIOR> 59367
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 754
<ACCUMULATED-NET-GAINS> 2683
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 294444
<NET-ASSETS> 1260386
<DIVIDEND-INCOME> 9415
<INTEREST-INCOME> 29258
<OTHER-INCOME> 0
<EXPENSES-NET> 2059
<NET-INVESTMENT-INCOME> 36614
<REALIZED-GAINS-CURRENT> 9950
<APPREC-INCREASE-CURRENT> 157724
<NET-CHANGE-FROM-OPS> 204288
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 37368
<DISTRIBUTIONS-OF-GAINS> 10005
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 25083
<NUMBER-OF-SHARES-REDEEMED> 9969
<SHARES-REINVESTED> 2876
<NET-CHANGE-IN-ASSETS> 434143
<ACCUMULATED-NII-PRIOR> 1089
<ACCUMULATED-GAINS-PRIOR> 6270
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 80
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2059
<AVERAGE-NET-ASSETS> 1028643
<PER-SHARE-NAV-BEGIN> 13.92
<PER-SHARE-NII> 0.520
<PER-SHARE-GAIN-APPREC> 2.525
<PER-SHARE-DIVIDEND> 0.530
<PER-SHARE-DISTRIBUTIONS> 0.145
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.29
<EXPENSE-RATIO> 0.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
