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TeachMeFinance.com - explain surplus surplus -- The amount by which the federal government's total revenues exceed its total outlays in a given period, typically a fiscal year. another definition... surplus -- (1) that which is over and above, or in addition to the required amount. (2) a mutual savings institution's retained earnings after payments to savers and additions to reserves. In a stock institution, these funds are called undivided profits. historic definition... Surplus -- Profit set aside after paying expenses and after necessary deductions, as for interest, dividends, rentals, taxes, etc. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.