Government surplus

Government surplus is a way of saying that the government removed more of its currency from the economy via taxation than it added via payments, during a given time period. For example, if the government made $1,000,000 in payments and taxed $1,200,000 during the year, the government surplus would equal $200,000. However, this also means the government removed $200,000 from the rest of the economy, which therefore has a deficit.