When it comes to the incentives to work and to save, it is difficult to see how fiscal neutrality can be achieved. — Что касается стимулов к работе или сбережениям, не совсем понятно, каким образом можно достичь нейтральности налогообложения.
A balanced budget is an example of fiscal neutrality, where government spending is covered almost exactly by tax revenue – in other words, where tax revenue is equal to government spending.
A situation where spending exceeds the revenue generated from taxes is called a fiscal deficit and requires the government to borrow money to cover the shortfall. When tax revenues exceed spending, a fiscal surplus results, and the excess money can be invested for future use.