Budget Surplus

A budget surplus occurs when a government, organization, or individual earns more money during a specific period than they spend. Essentially, it means they have extra funds left over after covering all expenses. For governments, a surplus can be used to pay down debt, save for future needs, or invest in projects. It indicates fiscal health and management efficiency, showing that income exceeds expenditures. A surplus can also provide financial flexibility and stability, reducing reliance on borrowing and helping to fund future initiatives or economic stability.