Eli5: Budget surplus
In: Economics
Surplus = an amount of something you have remaining after you’ve used all the “something” you needed. A budget surplus is just extra money left over after fulfilling all your needs. If you make $2000 a month and budget $800 for rent and $200 for groceries and $100 for gas, well, you budgeted $1100 and at the end of the month you’ll expect to have a *surplus* of $900. Same thing happens with government spending sometimes – they need to pay for education and road repair and cops and firefighters and all that, and so they budget out money for all that stuff. And they’re getting money from taxes. And maybe the money from taxes is more than enough to cover the budget for all those expenses so they end up with a surplus.
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