Answer to Question #299563 in Macroeconomics for tin

Question

What is the budget where tax collected exceeds the required expenditures?

Answer 1

Budget Surplus

Among the three types of budget, the budget surplus is the kind of budget that annotates that the collected tax exceeds the required expenditures. In other terms, some economists call it the fiscal surplus since they believe that it occurs when the government revenue exceeds the spending (Fong, 2021). For example, there was a surplus in the government in 2001 for the second time in the US. Statistics show that the government received actual revenue of approximately 1.9 trillion, and the actual expenditure for that year was 1.8 trillion. Budget surplus is beneficial to the economy since it may reduce taxes, initiate new programs, and pay public debts.

Reference

Fong, B. C. (2021). Deficit and surplus politics: a comparative study of Hong Kong and Singapore. International Public Management Journal, 24(5), 673-690.