Budget surplus

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Budget surplus - total budget revenue in excess of budget expenditure; one of the types of financial surplus. It causes the withdrawal of a certain amount of money (deflationary activity) and allows you to add additional money through credit (money creation).

The budget surplus is one of the sources of bank loans. The scale and purpose of the budget surplus is a derivative of social policy and economic policy. It also depends on the business financing system, which can involve a range of business entities, budget subsidies and bank loans to varying degrees.

Under the state budget, budget surpluses occur and are disbursed in individual unit budgets.

A distinction is made between the planned surplus resulting from the revenue and expenditure budgets established in the budget, and the surplus realized in the implementation of the budget. The planned surplus is a reserve that secures the implementation of the budget or may have a different intended purpose. The surplus realized is the amount of cash that goes to the next budgetary period. It can be used to cover budget deficits in the coming years or additional expenses. The use of budget surplus from previous years has a similar effect on the balance of payments in the same year as the budget deficit. Bibliography

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