Net lending (+) / net borrowing (-) (current LCU)

This indicator serves as a crucial gauge of a government's fiscal stance, revealing the balance between its financial inflows and outflows. It is calculated by subtracting total government expenditures and net investment in non-financial assets from its revenue. Essentially, it reflects whether the government is generating surplus funds to redistribute to various sectors within the economy or is reliant on external financial resources to meet its fiscal commitments. A positive value illustrates a situation where the government is a net lender, enhancing liquidity in the economy, while a negative value indicates net borrowing, suggesting reliance on financing to sustain operations. Monitoring this metric helps policymakers assess fiscal sustainability and the potential impact on economic growth. Source: