| Code | GC.NLD.TOTL.GD.ZS |
| Indicator Name | Net lending (+) / net borrowing (-) (% of GDP) |
| Long definition | Net lending (+) / net borrowing (–) equals government revenue minus expense, minus net investment in nonfinancial assets. It is also equal to the net result of transactions in financial assets and liabilities. Net lending/net borrowing is a summary measure indicating the extent to which government is either putting financial resources at the disposal of other sectors in the economy or abroad, or utilizing the financial resources generated by other sectors in the economy or from abroad. This indicator is expressed as a percentage of Gross Domestic Product (GDP) which is the total income earned through the production of goods and services in an economic territory during an accounting period. |
| Source | Government Finance Statistics Yearbook and data files, International Monetary Fund (IMF) |
| Topic | Public Sector: Government finance: Deficit & financing |
| Dataset | WB_WDI |
| Unit of measure | % |
| Periodicity | Annual |
| Reference period | 1972-2024 |
| Aggregation method | Weighted average |
| Statistical concept and methodology | Methodology: Government Finance statistics are compiled in accordance with international standards: Government Finance Statistics Manual, 2014 or 2001 editions. Specific information on how countries compile their Government Finance statistics can be found on the IMF website: https://dsbb.imf.org/
Statistical concept(s): Government Financial Statistics are compiled within a conceptual and reporting framework suitable for analyzing and evaluating fiscal policy, especially the performance of the general government sector and the broader public sector of any economy. |
| Development relevance | This indicator is related to Government finance statistics. Government finance statistics provide a detailed snapshot of a government's fiscal operations and health. They encompass data on revenue, expenditures, deficits, and debt levels, which are essential for crafting fiscal policy, budget planning, and economic forecasting. These statistics help policymakers manage public finances effectively, make informed decisions on taxation and spending, and set priorities for resource allocation. For investors, analysts, and the international community, government finance statistics serve as key indicators of a country's economic stability and creditworthiness. They also play a crucial role in ensuring transparency and accountability, as they allow citizens and oversight bodies to track how public funds are managed and spent, fostering democratic engagement and governance. More specifically, this indicator is the balance of the government statistics. Balance items represent the difference between the total revenue and total expenditure of a government. If this balance is positive, it indicates net lending, meaning the government has a surplus and can potentially lend or invest the excess funds. Conversely, if the balance is negative, it indicates net borrowing, meaning the government has a deficit and may need to borrow funds to cover the shortfall. This figure is important because it provides a clear indicator of a government's fiscal health and its ability to finance its operations without resorting to additional borrowing. It is also a key indicator used by policymakers to make informed decisions about fiscal policy, taxation, and public spending. Furthermore, it is an essential metric for international organizations, investors, and credit rating agencies to assess a country's economic stability and creditworthiness. |
| Limitations and exceptions | For most countries central government finance data have been consolidated into one account, but for others only budgetary central government accounts are available. Countries reporting budgetary data are noted in the country metadata. Because budgetary accounts may not include all central government units (such as social security funds), they usually provide an incomplete picture. In federal states the central government accounts provide an incomplete view of total public finance.
Data on government revenue and expense are collected by the IMF through questionnaires to member countries and by the Organisation for Economic Co-operation and Development (OECD). Despite IMF efforts to standardize data collection, statistics are often incomplete, untimely, and not comparable across countries. |
| License URL | https://datacatalog.worldbank.org/int/public-licenses#cc-by |
| License Type | CC BY-4.0 |
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