Budget Surplus & History

The Budget Surplus is the case when the government’s revenues from its operations exceed the total amount spent by the government. It is ideally suited in the cases where there is inflation in the economy. This will reduce the aggregate demand as the government revenues are greater than the government expenditure. However, in the case of deflation, this type of budget is the most inappropriate kind of budget to follow. As far as the history of the budget surplus is concerned, United States did incur a budget surplus starting in the year 1947. This was the first time when the United States incurred a budget surplus which lasted till the year 1949.
Then again in the year 1951, there was a budget surplus which returned back in the year 1956 and 1957. In 1969, there was a very small amount of budget surplus after which there was a budget deficit for a period of three decades. In the year 1998 till the year 2001, the United States enjoyed the period of budget surplus. Till date, the United States is in the period of budget deficit only.