What is achieved when a government collects more money in taxes than it spends in a given year?

When a government collects more money in taxes than it spends in a given year, this situation is referred to as a budget surplus. A budget surplus occurs when the revenue generated from taxes exceeds the government's expenditures, indicating that the government is operating with a financial gain rather than a loss.

This surplus can serve various purposes, such as paying down public debt, saving for future needs, or funding new initiatives without the need for additional borrowing. A budget surplus is usually seen as a positive economic indicator, suggesting that the government is managing its finances prudently and has extra funds that can be allocated for public services or investments.

In contrast, a budget deficit occurs when expenditures surpass revenues, indicating that the government is borrowing or using reserves to finance its operations. A balanced budget occurs when revenues equal expenditures, meaning the government neither has a surplus nor a deficit. The Phillips curve, on the other hand, relates to the relationship between inflation and unemployment and does not pertain to government budget figures.