A fiscal surplus occurs when a government's revenue exceeds its expenditures over a specific period, typically a fiscal year. This means that the government has more money coming in from sources like taxes and fees than it spends on public services, infrastructure, and other obligations. A fiscal surplus can indicate a healthy economy and effective financial management. Governments can use a fiscal surplus in various ways, such as paying down debt, saving for future needs, or investing in public projects. Maintaining a fiscal surplus can help build financial stability and provide a buffer against economic downturns, benefiting citizens and the overall economy.