ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget surplus occurs when the government earns more than it spends. On the contrary, a budget deficit occurs when the expenditure is more than the income.

Detailed explanation-2: -2 When is a budget said to be a surplus budget’? Answer: If the budget receipts are more than the budget expenditure, then the budget is termed as a surplus budget.

Detailed explanation-3: -If the government spends more than it collects in revenue, then there is a budget deficit. If the government spends less than it collects in revenue, there is a budget surplus. In fiscal year (FY) 2022, the government spent $6.27 trillion, which was more than it collected (revenue), resulting in a deficit.

Detailed explanation-4: -Understanding the National Deficit The amount by which spending exceeds revenue, $1.38 trillion in 2022, is referred to as deficit spending. The opposite of a budget deficit is a budget surplus, which occurs when the federal government collects more money than it spends.

Detailed explanation-5: -A budget surplus (aka fiscal surplus) occurs when revenue exceeds spending for a set period. For governments, this means that the government brought in more money than it spent.