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For more on marking an answer as the "Best Answer", please visit our FAQ.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