Golden rule of budgetary discipline

The Golden Rule of budgetary discipline states that governments should only borrow money to invest in projects that will benefit future generations, rather than for current spending. Essentially, it means that public debt should be used for productive investments that enhance economic growth, such as infrastructure or education, which can help pay for itself over time. The rule aims to ensure fiscal responsibility, preventing excessive borrowing that could jeopardize economic stability and future public services. In short, it encourages responsible financial management for the long-term benefit of society.