If a country runs a current account surplus and national private savings equals domestic investment,then the combined governmental accounts

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When a country runs a current account surplus and national private savings equals domestic investment, it means that the country is exporting more than it is importing and that the savings of its citizens are fully funding its domestic investments. For the national accounts identity (Current Account = Savings - Investment + Government Budget) to hold, if the current account is in surplus and savings equals investment, the government budget must be in surplus (positive) to balance the equation. This is because the surplus in the current account indicates that the country is lending more to the rest of the world than it is borrowing, which must be matched by a surplus in the government budget if private savings exactly fund domestic investment.

If a Country Runs a Current Account Surplus and National