The primary difficulty with governments retaining surpluses is that the government has no proprietary right to the funds in its coffers. The taxpayer effectively subsidizes the government, on the understanding that it will undertake functions necessary for the defence, continued operation and normative improvement of the state and society.  Clearly defense has to be one of the core functions of government and there are a few others, such as maintaining law and order. For government to say that the only way of securing its own finances is running a small surplus in its current account budget is palpably not true when there is astonishing waste in government expenditure, which is in turn already bloated and intervenes into areas of public life where it simply does not belong.  In terms of using government expenditure as a tool to respond to recessions, there may well be a role in terms of how government uses its own purchasing power and it makes sense that should be used for domestic purchasing wherever possible, however there is little to be gained by government creating imaginary jobs undertaking roles that simply don’t produce anything.  Instead the most useful role that government can play during a recession is not expanding its own size and, therefore, the final cost to the taxpayer, but reducing it. Cutting the size of government reduces the tax burden on business and individuals and cuts back on regulatory pressure. Both actions free up money for expenditure which creates real jobs in the real economy, producing real wealth, in turn spent on real products, which in turn create jobs. This beneficial cycle is the basis of economics, creating imaginary jobs simply takes skills out of the real economy and reduces the pressure on individuals to take jobs that they might not see as ideal.  The most sensible response to a government surplus is not to hoard it on the basis that it might come in useful at some undefined point in the future but to give it back to the people who earned it in the first place. Doing so means that it is spent in the real economy, creating real wealth and real jobs and thereby avoiding the prospect of recession in the first place.  Ultimately it comes down to a simple divide as to whether you believe governments or people are better at spending money. The evidence of waste and incompetence in government expenditure is compelling and it seems an absurd solution to governments mismanaging the money they already have to give them more.