Question

Which of the following occurs when all taxes and other revenues exceed government expenditures for a year?

• A. Balanced budget
• B. Budget surplus
• C. Government debt
• D. Budget deficit

Answer 1

The correct option is B Budget surplus

A budget surplus is a period when income or receipts exceed outlays or expenditures. A budget surplus often refers to the financial states of governments; individuals prefer to use the term 'savings' instead of the term 'budget surplus.' A surplus is an indication that the government is being effectively managed.