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: -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-3: -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 prefer to use the term ‘savings’ instead of the term ‘budget surplus. ‘ A surplus is an indication that the government is being effectively managed.

Detailed explanation-4: -A deficit occurs when the federal government’s spending exceeds its revenues. The federal government has spent $460 billion more than it has collected in fiscal year (FY) 2023, resulting in a national deficit. $

Detailed explanation-5: -A balanced budget is when the government spends an amount equal to the amount it collects in taxes. A budget deficit is when the government spends more than it collects in taxes. A budget surplus is when the government collects more in taxes than it spends.