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It isn't actually the balloon itself (i.e. the rubber) that makes the noise, it is the released air.
When the balloon is inflated the air inside is at at a higher pressure than the air outside, when the balloon is burst the air pressure inside tries to equalise with the air pressure outside. This cannot happen instantaneously so a wave of high pressure air is released, waves of high pressure are exactly what sound is so when the high pressure hits your ears you hear a bang.
Lifted from: here
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