It reduces peoples purchasing  power which may reduce Aggregate demand for goods and services.

It reduces  government's  recurrent  and development expenditure which may decrease the rate of  economic growth.

A surplus budget imposes a heavy tax burden  on citizens.

High taxes  to support  a surplus budget  tend to reduce  and discourage  investments.

The combined effect of decrease in investments and reduced government expenditure may lead  to unemployment.

A surplus budget has a positive effect  of minimizing inflation.