The opposite of a budget deficit, a budget surplus, occurs when the government’s revenue exceeds current expenditures resulting in an excess of money that can be used as needed. A surplus budget is a condition when income or receipts overreach costs or outlays (expenditures). It happened during consecutive years from 1998 until 2001. Understanding Surplus . In fact, the government has recorded budget surpluses in only five years since 1969, most of them under Democratic President Bill Clinton . Budget 101 – Surplus, Deficit And Balanced Budget. A budget … A government runs a budget surplus when total tax revenues exceeds government spending in any given year. The United States government has only achieved a budget surplus four times since 1970. Clinton did not have a surplus of $230B in the year 2000 because he had to borrow $246.5 From numerous other off budget funds. They are a surplus budget, a deficit budget, and a balanced budget. In the case of Norway and Qatar, they have strong tax revenues from oil. - Democrat Bill Clinton was president in 1998, when the government finally recorded a surplus. Depending on the country’s economic conditions, governments would strategically deploy different types of budget for different situations. Primary Budget surplus. The UK very rarely had a budget surplus 1950- 2013, but will still reduce debt to GDP ratio quite a lot – because economic growth reduces debt to GDP. Budget surplus is an important part of a business in order to facilitate growth and investment, which in turn can lead for new successes in the future. 8. It is the opposite of a trade deficit – … The budget surplus might be adjusted to take account the effects of the economic cycle. This is also known as a fiscal surplus. 1:15. You don’t need a budget surplus to reduce debt to GDP ratio. Continual budget surpluses, or profits , are recorded as Retained Earnings on the Balance Sheet , and are a key source of financing for the company. A primary budget surplus occurs when tax revenues are greater than government spending (excluding debt interest payments) For example, a government may have a budget deficit of £10bn, but if they are spending £12bn on interest payments, we can say there is a primary budget surplus of £2bn. - There also were budget surpluses in 1999, 2000 and in 2001. 2001 was the last year the Clinton administration proposed the budget. - The U.S. government suffered budget deficits every year from 1970 through 1997. There are three main types of budgets that governments generally have. It is a positive measurement of a country’s balance of trade. A surplus budget normally refers to the financial conditions of the governments. Running budget surplus and investment. This means that there is a net inflow of domestic currency from foreign markets. 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