That definition is actually more aligned with the concept of a budget deficit. A budget is simply a plan that outlines expected revenues (like tax revenues) and expenditures (spending) over a certain period, typically a year.
When a government spends more than it collects in tax revenues, it is running a budget deficit. Conversely, if a government collects more in revenues than it spends, it has a budget surplus.
So, to clarify:
- Budget: A plan for expected revenues and expenditures.
- Budget Deficit: When expenditures exceed revenues.
- Budget Surplus: When revenues exceed expenditures.
Let me know if you need further clarification!