Budget surpluses occur when a government's revenues exceed its expenditures in a given period. In other words, it means that the government is taking in more money than it is spending.
Related terms
Fiscal policy: The use of government spending and taxation to influence the economy.
Balanced budget: When a government's revenues equal its expenditures, resulting in no deficit or surplus.
Crowding out effect: A situation where increased government borrowing leads to higher interest rates and reduces private investment.