Definition of Budget Surplus





What is a budget surplus? What is the definition of a budget surplus? What does the term budget surplus mean?

A number of different entities create budgets. Governments create budgets. Businesses create budgets. Households create budgets.

When you create a budget, one of three things can happen:

1. You can post a budget deficit.

2. You can post a budget surplus.

3. You can post a balanced budget.

Budget Surplus definition - FinanceFor this definition, we are going to focus on the budget surplus.

When creating a budget, you ideally want to balance out your expected revenues with your expected expenses.

If your expenses end up being higher than your revenues, then you have run a "budget deficit".

If your revenues end up being higher than your expenses, then you have run a "budget surplus".





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