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Budget Surplus

A budget surplus occurs when government tax revenues are greater than spending in a given fiscal year.

At the national level, a budget surplus can be seen as a sign of a healthy economy and may be used to pay down debt, invest in infrastructure or other long-term projects, or provide tax relief to citizens. However, a budget surplus can also be seen as a negative outcome if it is achieved through austerity measures that cut essential services or harm the most vulnerable members of society.

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