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When government spending exceeds revenue, there is a budget deficit. When government spending is lower than revenue, there is a budget surplus.

What happens when the government has a budget surplus or deficit?

A government has extra money when it has a surplus, which it might invest or use to pay down debt. A deficit is the polar opposite of a surplus. The government must borrow money to cover expenses when spending exceeds revenue. The last time there was a budget surplus in the US was in 2001.

What separates a budget deficit from a budget surplus?

The amount in a budget that is left over after all required payments have been completed is known as a budget surplus. When the federal government spends more than it collects, there is a budget deficit. An overflowing budget is better for the government.

Learn more about budget deficit: https://brainly.com/question/29602763

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