A budget surplus occurs when a government's or organization's income exceeds its expenditures over a specific period. This means that after all expenses are paid, there is leftover money available. A budget surplus can indicate good financial health and effective management of resources. Surpluses can be used in various ways, such as paying down debt, saving for future projects, or investing in public services. For example, a government with a budget surplus might allocate funds to improve infrastructure or enhance social programs, benefiting the community and promoting economic growth.