Primary balance (statistical term)
Primary balance is defined by the Organisation for Economic Co-operation and Development (OECD) as government net borrowing or net lending, excluding interest payments on consolidated government liabilities.[1] A federal budget that achieves primary balance has federal revenues equaling spending but with a remaining budget deficit as a result of interest payments on past debt. The Center for American Progress recommended on December 14, 2009 that the United State set as a goal achieving primary balance by 2014.
References
- ^ "OECD Glossary of Statistical Terms: Primary Balance". stats.oecd.org. Retrieved August 14, 2011.