Question

What is the difference between a deficit and a surplus?

A deficit is the amount of money gained as a result of taxation; a surplus is the amount of money lost as a result of spending.
A deficit results when less money is spent than taken in; a surplus results when less money is taken in than spent.
A deficit is the result of consecutive years of surpluses; a surplus is the amount of money that is greater than what is budgeted.
A deficit results when more money is spent than is taken in; a surplus results when more money is taken in than is spent.

Answer 1

Deficits and surplus are complete opposites to one another :)
In basic terms, deficit occurs when you SPEND more than you've saved or if you spend more than you have.

A surplus occurs when you have extra money left over or too much of something. It usually occurs when you SAVE more than you've spent !

Hope this helped :))