What is a budget surplus?
A budget surplus occurs when government revenues exceed expenditures over a period.
Definition, calculation and mechanism
The result changes with central versus general government coverage. Tax revenue can rise cyclically and create a temporary surplus. A primary balance excluding interest differs from the overall balance.
Interpretation, examples and limits
A surplus can reduce debt or build reserves, but does not automatically signal strong services or growth. Deferred investment may also change the balance. Assess debt stocks and future obligations.
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