Explanation:

- A budget deficit occurs when a government spends more money than it collects in taxes. This leads to borrowing to cover the shortfall.

- A budget surplus happens when tax collection surpasses the required government expenditure. This often allows for savings, debt reduction, or increased spending in other areas.

Correct Answer: Option 2, surplus

- Economic spread is not a standard term used in budgeting contexts, thus not relevant here.

- A budget is in balance when expenditures equal tax collections. No surplus or deficit exists in this scenario.