A fragile government balance can pose major economic issues for African countries, especially at a time when many governments are already dealing with heavy debt burdens, rising borrowing prices, and an unpredictable global climate.
The government balance is the difference between a government's revenues and expenses.
When expenditure continuously surpasses revenue, governments experience fiscal deficits, which are frequently paid for by borrowing.
Over time, this can lead to greater public debt and increased strain on national budgets.
The World Bank's Making Industrial Policy Work in Africa report explains why strengthening government balances has become a top goal in Sub-Saharan Africa.
