Budget Surplus

Budget Surplus

A situation in which income exceeds expenditures. The term "budget surplus" is most commonly used to refer to the financial situations of governments; individuals speak of "savings" rather than a "budget surplus." A surplus is considered a sign that government is being run efficiently. A budget surplus might be used to pay off debt, save for the future, or to make a desired purchase that has been delayed. A city government that had a surplus might use the money to make improvements to a run-down park, for example.

When spending exceeds income, the result is a budget deficit, which must be financed by borrowing money and paying interest on the borrowed funds, much like an individual spending more than he can afford and carrying a balance on a credit card. A balanced budget occurs when spending equals income. The U.S. government has only had a budget surplus in a few years since 1950. The Clinton administration (1993-2001) famously cured a large budget deficit and created a surplus in the late 1990s.

Investment dictionary. . 2012.

Look at other dictionaries:

  • budget surplus — The amount by which government revenues exceed government spending. Bloomberg Financial Dictionary * * * budget surplus budget surplus ➔ surplus1 * * *    The amount by which revenues exceed spending. It usually refers to government spending and… …   Financial and business terms

  • budget surplus — biudžeto perteklius statusas Aprobuotas sritis biudžetas apibrėžtis Skirtumas tarp biudžeto pajamų ir asignavimų, kai pajamos viršija asignavimus. atitikmenys: angl. budget surplus šaltinis Lietuvos Respublikos biudžeto sandaros įstatymo 1, 2, 3 …   Lithuanian dictionary (lietuvių žodynas)

  • budget surplus — See budget deficit …   Big dictionary of business and management

  • budget surplus — /ˌbʌdʒɪt sɜ:pləs/ noun a situation where there is more revenue than was planned for in the budget …   Marketing dictionary in english

  • budget surplus — /ˌbʌdʒɪt sɜ:pləs/ noun a situation where there is more revenue than was planned for in the budget …   Dictionary of banking and finance

  • High Employment Budget Surplus (HEBS) — ein auf den amerikanischen Council of Economic Advisers (CEA) zurückgehendes ⇡ Budgetkonzept zur Messung des ⇡ konjunkturellen Impulses des Budgets. Ausgangspunkt der Überlegungen ist die These, dass ein bei Vollbeschäftigung ausgeglichener… …   Lexikon der Economics

  • Surplus — may refer to:* budget surplus, the opposite of a budget deficit * in economics, economic surplus (including producer surplus and consumer surplus), and capital surplus * an excess of production or supply over demand (see supply and demand) *… …   Wikipedia

  • Budget theory — is the academic study of political and social motivations behind government and civil society budgeting. Classic theorists include Henry Adams, William F. Willoughby, V. O. Key, Jr., and, more recently, Aaron Wildavsky. Notable recent theorists… …   Wikipedia

  • surplus — ▪ I. surplus sur‧plus 1 [ˈsɜːpləs ǁ ˈsɜːr ] noun 1. [countable, uncountable] ECONOMICS an amount of something that is more than what is wanted, needed, or used: • Sugar prices fell after revised estimates of the surplus for the current crop year …   Financial and business terms

  • surplus — [[t]sɜ͟ː(r)pləs[/t]] ♦♦♦ surpluses 1) N VAR If there is a surplus of something, there is more than is needed. Germany suffers from a surplus of teachers. 2) ADJ: usu ADJ n, also v link ADJ to n Surplus is used to describe something that is extra… …   English dictionary

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