What is the primary fiscal balance?
The primary balance is revenues minus spending excluding interest payments.
Definition, calculation and mechanism
It separates current revenue-spending policy from interest costs. A country may have a primary surplus but an overall deficit after interest. Specify institutions and one-off revenues included.
Interpretation, examples and limits
Debt dynamics also depend on interest, growth and currency composition, so a primary surplus does not guarantee falling debt. Evaluate effects on public services by spending composition.
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