Government & Fiscal
Budget balance
The budget balance is the difference between a government's total revenue and total spending over a fiscal period, usually expressed as a percentage of GDP for comparability across countries. A budget balance of -4% of GDP means the government spent 4% of GDP more than it collected in revenue that year — a deficit.
Why it matters
It's the clearest single read on whether a government's fiscal policy is expansionary or restrained.
Also known as: fiscal balance, government balance