1. The Government Budget Government Expenditures Less Government Revenues = Budget Surplus or Deficit* * Surplus if positive, deficit if negative +/- Δ in Public Debt

2. The Government Budget Government Expenditures Less Government Revenues = Budget Surplus or Deficit* * Surplus if positive, deficit if negative +/- Δ in Public Debt Sale of Goods & Services Taxes Sale of Govt. Assets/Propert y Capital Expenditures Current Expenditures Transfer Payments

3. The Government Budget Government Expenditures Less Government Revenues = Budget Surplus or Deficit* +/- Δ in Public Debt Sale of Goods & Services Taxes Sale of Govt. Assets/Propert y Capital Expenditures Current Expenditures Transfer Payments Calculation of surplus or deficit often excludes non-tax revenues because sales (especially of property) may be non-recurring events

4. 2011 United Kingdom Budget Government Expenditures Less Government Revenues = Budget Surplus or Deficit* £ 548 bn.

5. 2010-2011 United Kingdom Budget Government Expenditures Less Government Revenues = Budget Surplus or Deficit* £ 548 bn. £ 697 bn. + = £ - 149 bn.

6. The Budget and National Debt For your country: What is the budget surplus or deficit for this year? What was it for last year? What changed? What is the national debt? What is the GDP? What is national debt/GDP?

7. The Budget and National Debt ($ millions)