Goods market:  Calculate the budget balance of government
Channel: Werner Lost
Date: 2012-01-17

Show how to calculate the budget balance of government.  
A budget deficit exists when the government's total expenditure, consisting of purchases of goods and services (G) and transfer payments (R), exceeds its revenue, consisting of taxes (T).
Budget deficit =  (G + R) is greater than T or T is smaller than (G + R)

A budget surplus exists when government's revenue, consisting of taxes (T), exceeds its total expenditure, consisting of purchases of goods and services (G) and transfer payments (R).
Budget surplus = (G + R)  is smaller than T or T greater than (G + R)