Government budget balance (% of GDP) in Iceland

This indicator measures the general government budget balance as a percentage of GDP, also called net lending (+) or net borrowing (−). It is calculated as total general government revenue minus total general government expenditure. Positive values mean a government budget surplus; negative values mean a government budget deficit.
Comparing budget balances across countries shows whether governments are financing spending from their own revenues or drawing on borrowing in a given year. Persistent deficits add to government debt over time, while surpluses can reduce it.