What is the term for the excess funding when a government spends less than it raises through taxes?

The term for the excess funding when a government spends less than it raises through taxes is known as a budget surplus. This occurs when the revenue generated from taxes and other sources exceeds the total expenditures of the government over a specific period, typically a fiscal year. A budget surplus indicates that the government has more financial resources than it needs to cover its expenses, allowing for potential savings, debt reduction, or reinvestment into public services and infrastructure.

In contrast, a balanced budget occurs when government revenues equal expenditures, resulting in neither a surplus nor a deficit. A budget deficit happens when expenditures surpass revenues, leading to a shortfall that may require borrowing or drawing from reserves. National debt, on the other hand, refers to the total amount of money that a government owes to creditors, which can be influenced by both budget surpluses and deficits over time. Understanding these terms is crucial in evaluating governmental financial health and economic policy decisions.