The concept surplus refers to the situation that occurs when there is an excess of something necessary. In the area of finance, the surplus occurs when income is greater than expenses. In this case, the income generated covers the expenses, since the capacity to collect income exceeds the burdens borne by an administration, organization or person.
The term surplus is linked to the financial and economic situation of a public entity or institution during a specific period of time, which is usually a month, a quarter or a year.
A surplus situation is a good thing. In the case of public accounts of an administration, it implies that expenses can be covered. It is the opposite of a deficit, where expenses exceed income.
Survival types
Although it is mainly associated with the world of administrations and companies, there are also several types of surplus:
- Fiscal surplus: it is linked to the public administration, and it occurs when a public organization or government manages to raise more money than it needs to bear the burdens.
- Public surplus
- Budget surplus
- He overcame a primer
- Foreign surplus: refers to the difference between income and expenses of a country with respect to abroad.
- Capital oversight
- Trade surplus or positive trade balance
- Financial surplus
- Structural surplus: it is created constantly and independently of the influence of an economic period. It is very necessary to correct it as quickly as possible to avoid greater evils.
- Trend surplus
- Discretionary surplus
- Cyclical or conjunctural surplus: in this case, the surplus situation is temporary and is caused by economic periods. It will not involve making immediate decisions to change the situation.
- Private surplus: it occurs when a family or company obtains enough income to meet the expenses it has.