Government 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 government surplus can be used to pay down debt, invest in future projects, or save for economic downturns. It reflects a healthy financial position, allowing for potential tax cuts or increased spending on programs that benefit citizens, such as education and healthcare.