But there could be a nasty sting in the tail for the Italian after he seemed to catch Scott Parker in the face with a needless kick.
Not that any disciplinary problems will bother City's supporters as they celebrated what could be a priceless victory in the title race.
After a goalless first half, the Blues were in control when Samir Nasri and Joleon Lescott struck.
But Jermain Defoe profited from Stefan Savic's mistake almost immediately before Gareth Bale levelled with a magnificent curling shot.
Spurs seemed more likely winners after that.
But when Defoe could only turn an injury-time Bale cross narrowly wide as he slid in at the far-post, it gave Balotelli a chance to win the match after he had been fouled by Ledley King.
It maintained City's 100% home record this season and piles the pressure on their rivals, who are all playing catch-up.
Knowing they would be eight points behind if they lost and with personal knowledge of the havoc City are capable of causing following that humiliating 5-1 defeat in August, Tottenham had good cause to make it a tight affair.
Bale threatened on a couple of occasions, and should have made more of the position he found himself in when he checked inside James Milner's sliding tackle.
But Tottenham did not force Joe Hart into a meaningful save in the opening 45 minutes, Scott Parker and Younes Kaboul both firing well wide with long-range efforts.
It took City some time to get going, and even then they were only a sporadic threat.
However, in Sergio Aguero they had the game's most obvious first goalscorer.
The club-record £38million front-man has looked tired in recent games as he attempted to shoulder the goalscoring burden. Here though, he excelled.
Having had Edin Dzeko nick the ball off his foot when he was lining up a shot at Wigan on Monday, the South American must have been dismayed when the same team-mate got in the way of his efforts to turn home David Silva's cutback.
Aguero's best opportunity came not long afterwards.
In attempting to pass their way out of a tight spot by the touchline, Spurs only ended up getting themselves into trouble as Micah Richards thundered into Parker to seize possession.
Richards strode on into the box, then squared for Aguero, whose shot was superbly turned away by Friedel.
Of the millions of pounds splashed out last summer - and with more set to follow in the last nine days of this transfer window - the signing of a 40-year-old American may turn out to be the most astute.
Silva also fired across the face of Friedel's goal - but it was in the second half that the action started in earnest.
In truth, though it ended with a spectacular equaliser from Bale, City boss Roberto Mancini would have been disappointed with the four-goal burst in the space of 10 minutes because it saw his side toss away a winning position.
City took the lead thanks to Silva's brilliant through-ball, which coincided perfectly with Nasri's dash from the left touchline that went completely unchecked even though it took him through the heart of the visitors' defence. The former Arsenal man has his critics but the shot which beat Friedel was blistering and gave the American no chance.
On their next attack, City doubled their advantage as Lescott first stood on Nasri's corner, then, from barely a yard, somehow sent the ball trundling over the line as he fell.
It should have been all over.
That it wasn't was due to Savic's bizarre attempt to reach Hart with a 50-yard back header that succeeded only in letting in Defoe, who rounded Hart, then turned the ball into an empty net.
Bale's blockbuster came five minutes later, one of those goals a keeper can only shrug their shoulders at being beaten by, the Welshman's brilliant first-time curling effort from Aaron Lennon's square pass finding the roof of Hart's net.
The goal frenzy triggered the arrival of Balotelli, who had already been shown the yellow card when he tangled with Parker, the initial contact accidental, the second far less easy to excuse.
That he should remain on the pitch was a matter for Spurs to reflect on as the Italian coolly converted his penalty to delight the City fans.