I had forgot what the difference was, so looked it up. Simplified, income versus outgo. Example: budget calls for $3.7 trillion to operate the country. If the IRS collects $4 Trillion, we have a surplus of $0.3 Trillion if the IRS collects $3.5 Trillion, we have a deficit of $0.2Trillion. The government then borrows money, usually from the Social Security Trust Fund, to make up that shortfall. This is a loan they are required to pay back, with interest.
I have to step back a moment to the Clinton administration. A number of things took place then that included raising taxes and cutting the budget. By the time Clinton left office, the IRS was taking in more than the government was spending, erho, the surplus. The project was two fold on surpluses: first was a plan to pay off the public debt by 2006. Also projected was building a nestegg to act as a rainy day fund, basically, to keep us out of debt.
Congress did several foolish things. Basically, it threw out the fiscally responsible plan, and went from tax and save to spend and borrow. It would be like you had $2K in the bank, so you went to your boss and demanded a cut in pay because you have too much money.
This is where the rubber stamp presidency has a problem. The GOP Congress decided that taxes were too high and pushed the Bush tax cuts that didn't expire until 2010. Unfotunately, they failed to cut the budget enough to offset the tax cuts. M