Government Budget Surpluss

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A budget surplus is a period when income or receipts exceed outlays or expenditures. A budget surplus often refers to the financial states of governments; individuals use the term savings instead of the term budget surplus. A [surplus] is regarded as an indication that the government is being effectively managed.

A budget surplus might be used to make a desired purchase that has been delayed, pay off debt or save for the future. A city government that has a surplus may use the money to render improvements to a local dilapidated park.

When expenditures exceed income, the outcome is [a budget deficit], which is funded by borrowing funds and paying interest on the borrowed money, similar to an individual spending more than he earns and carries …show more content…

government budget surplus. The receipts for the year amounted to $330 billion while expenditures for the year were $323 billion. This gave a budget surplus of $6 billion.

<>Overview<>
Economic and spending changes generate a surplus. A budget surplus is an indicator of a healthy economy. However, it is not necessary for a government to maintain a budget surplus. For instance, not having budget surplus does not mean that the economy of the country is not being run efficiently. A budget surplus implies that the government has extra funds; these funds should be utilized to pay debts, which reduces the interest payable, and help the economy in the future.

For example, a surplus can be used to reduce taxes, start new programs, fund to existing public programs such as social security or Medicare; reduce the public debt, fund existing government agencies such as the military, infrastructure, energy, and public works, pay salaries, implement policy, or save to spend in the future when a budget deficit occurs.

A budget surplus occurs when a reduction in costs and spending or both have been successful or when revenues exceed expectations. An increase in taxes can also result in a surplus. A surplus decreases consumer demand, lowers consumer prices and slows down the

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