The government is currently spending three billion, one hundred million on programs and brings in three billion, five hundred million through taxation.

1. Does this create a budget surplus or deficit?

The answer is budget surplus

Explanation:

Budget surplus arises when the government revenue through taxes is more than the its spending. Here government generates three billion, five hundred million ($3,500,000,000)

And budget deficit is when the government spending is more than its spending. Here government generates three billion, five hundred million ($3,100,000,000)

The surplus here is $400,000,000 ($3,500,000,000 - $3,100,000,000)