fiscal policy & sustainability

What is a balanced budget?

A situation where government revenue equals government expenditure over a fiscal year.

What is a budget deficit?

A situation where government expenditure exceeds government revenue.

What is a budget surplus?

A situation where government revenue exceeds government expenditure.

What is fiscal sustainability?

The government's ability to manage public spending, debt and future obligations without excessive borrowing or creating instability in public finances.

What is public debt?

The total outstanding amount owed by the government as a result of borrowing to finance past deficits.

What are fiscal constraints?

Limitations on government spending arising from restricted revenue, borrowing capacity and competing expenditure priorities.