Which scenario represents a budget surplus?

A budget surplus occurs when revenues exceed expenditures, meaning the income generated is greater than the costs incurred. This surplus indicates that the entity (be it an individual, organization, or government) has extra funds available after covering all of its expenses.

In this scenario, when revenues surpass expenditures, it reflects effective financial management, as it allows for savings, investment, or other beneficial financial strategies. This condition can also signify that the budget was planned efficiently, securing adequate income sources while controlling expenses.

The other scenarios illustrate different financial situations: where expenditures exceed revenues indicates a deficit, revenues equaling expenditures shows a balanced budget, and economic growth with decreased spending may not directly relate to budget surplus since spending could still be lower than revenues, but not necessarily indicate excess funds.