Fiscal rules

Fiscal rules are guidelines governments set to manage public finances responsibly. They typically specify limits on borrowing, spending, or deficits to ensure economic stability and prevent excessive debt. These rules help maintain sustainable budgets, promote economic confidence, and prevent fiscal irresponsibility. They can be in the form of legal limits, targets, or standards that governments agree to follow when planning their budgets and making financial decisions. By adhering to fiscal rules, governments aim to balance providing essential services with maintaining fiscal health for future generations.