Define some terms:

 

Surplus: revenue > expenditures

Deficit:  expenditures > revenue

 

Debt: What you owe

 

Surplus reduces debt

 

Deficit increases debt

 

Surplus: revenue ($10) > expenditures ($8)

    

Debt is reduced by $2

 

Deficit:  expenditures ($10) > revenue ($8)

    

Debt is increase by $2