Economy
Fiscal Balance (Budget Surplus/Deficit)
Definition
The difference between a government's revenue and its expenditure in a given year, expressed as a percentage of GDP.
Explanation
A positive fiscal balance (surplus) means the government collects more than it spends. A negative balance (deficit) means it borrows to cover the gap. Most governments run deficits, which accumulate into national debt over time. During recessions, deficits tend to widen as tax revenue falls and social spending rises.