GENERAL KNOWLEDGE

Detailed explanation-1: -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.

Detailed explanation-2: -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.

Detailed explanation-3: -A budget deficit occurs when money going out (spending) exceeds money coming in (revenue) during a defined period. In FY 2022, the federal government spent $6.27 trillion and collected $4.90 trillion in revenue, resulting in a deficit.

Detailed explanation-4: -What is a budget surplus and a budget deficit? A budget surplus is when extra money is left over in a budget after expenses are paid. A budget deficit occurs when the federal government spends more money that it collects in revenue.