General government structural balance

The structural or underlying fiscal balance is the difference between government revenues and expenditures corrected for effects that could be attributed to economic cycle one-off events. Removing of fluctuations from figures enables policy makers identify trends aggregates allows them better assess sustainability public finances in long run. Government tend decline during downturns, as incomes fall. At same time, spending tends increase, more people claim social assistance unemployment benefits. Governments may also increase expenditure stimulate economy. All these were visible COVID-19 pandemic. a measure budget would have with its current policies if economy was operating at full potential (“potential GDP”).