Where does the money from a country's surplus go?

Question

Does the surplus mean that all infrastructure has been paid for?

Answer 1

No, it means tax revenue was bigger than tax expenditures.

Countries can do may things with it.

invest, save, spend on other projects (this could lead to increase in Aggragate Demand and then cause an increase in prices).

One example is during the Clinton era, revenue was bigger than expenditures, it was going to be used to pay down the Nation debt, but saddly it was all used to fund the Iraq war (and then they borrowed more).

Answer 2

i dont think so..

Answer 3

Almost all countries have a debt   in the form of bonds that are refinanced on a continuing basis. When the budget has a surplus some of the bonds are retired instead of refinanced, that is the debt is reduced.