budget surplus

Budget surplus

The amount by which government revenues exceed government spending.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Budget Surplus

The amount by which revenue exceeds expenditures. A budget surplus means that the budget is likely healthy, at least in the short-term, and that the government, company or individual it regards does not have to resort to borrowing. A company must have a budget surplus in order to make a profit. See also: Deficit.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

budget surplus

a surplus of TAXATION receipts over GOVERNMENT EXPENDITURE. Budget surpluses are used as an instrument of FISCAL POLICY to reduce the level of AGGREGATE DEMAND in the economy. See BUDGET (government), BUDGET DEFICIT, PUBLIC SECTOR DEBT REPAYMENT.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005