Economy

What is a surplus? »Its definition and meaning

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The word surplus comes from Latin roots, from the word “surplus”, from the entry “superāre” which means “to exceed” or “to spare”. Surplus is a term whose use has a greater boom in the field of the economy and commerce to refer to a set of profits or surpluses in economic activities or goods in excess of what is necessary. Therefore, the important dictionary of the Spanish royal academy defines the word surplus as "the excess of assets or funds over the debit or obligations of the cash, in the commercial sphere. "

In an economic context, surplus is generally used to refer to income that is superior or outstanding compared to expenses, for a specified period of time. But when the difference is not positive and income does not exceed expenses, it refers to a deficit situation that occurs on the contrary when the so-called expenses exceed income or input.

On the other hand, when mention is made of the surplus in a State sense, it refers to large numbers; It depends on that combination that the state must carry out to different external organizations, and in addition to each of the income that said state manages to collect, which could be through customs, fees, taxes, interests, exchanges, etc.

It should be noted that the surplus for a State is extremely vital since it allows it to have more freedom when making different decisions, and it does not have the need to depend on the help of other states or international organizations, which many times do not benefit at all. to the state. Finally, in foreign trade, a country can find itself in surplus when the number of exports exceeds the number of imports.