The budget balance — formally net lending (+) or net borrowing (−), item B.9 — is revenue minus spending in a single year. A negative figure is a deficit (the government borrowed to cover the gap); a positive figure is a surplus.
The 3% rule
The EU's Maastricht framework asks members to keep their deficit below 3% of GDP. Breaching it can trigger the Excessive Deficit Procedure. The limit was suspended during the pandemic and has since been reformed, but 3% remains the reference line.
Why it matters
Deficits are how debt accumulates. A one-off deficit in a downturn is normal and often sensible; persistent deficits in good times push the debt ratio up and leave less room to respond to the next crisis.
Source: Eurostat, Excessive Deficit Procedure / sector S13, annual.