This post will help you understand the three types of budgets outcomes that are possible (surplus, balanced and deficit), in line with your Prelim Economics course. Budget outcomes refer to the balance on the budget – surplus, balanced or deficit. A surplus budget occurs when there is greater tax revenue than government spending (T>G). A balanced budget occurs when tax revenue is equal to government spending (T=G). A deficit budget occurs when tax revenue is less than government spending (T<G).
An Overview of the Types of Budgets – Surplus, Balanced and Deficit
The video below explains these three outcomes in more detail.
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