ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget surplus is when income or revenue exceeds expenditures. Governments and companies with surpluses have additional money that can be reinvested or used to pay off debts. The opposite of a surplus is a deficit, which occurs when spending exceeds revenues.

Detailed explanation-2: -The government has a budget surplus if: its total revenues are greater than its total expenditures. If the government’s total revenues are less than its total expenditures, then it has a budget: deficit.

Detailed explanation-3: -positive and increasing. A budget surplus means that the government is spending less than it is taking in. So, when the surplus increases, it might be that the government is decreasing its spending and taxes are unchanged (i.e., G is decreasing, T unchanged).

Detailed explanation-4: -*A budget surplus is the excess of government revenues over government expenditures in a given time period. In order to reduce the U.S. debt: The government should spend less than it collects in tax revenues. *The only way to stop the growth of the national debt is to eliminate the budget deficits that create debt.