Net lending reflects the fiscal position of government after accounting for capital expenditures. Positive net lending means that government is providing financial resources to other sectors and negative net lending means that government requires financial resources from other economic sectors.

The accumulation of government debt is a key determinant of the sustainability of government finance. Apart from net acquisitions of financial assets, changes in government debt over time reflect the accumulation of government deficits/surpluses.

The responsibility for the provision of public goods and services and redistribution of income is divided between different levels of government. In some countries, local and regional governments play a larger role in delivering services, such as providing public housing or running schools. Data on the distribution of government spending by both level and function can provide an indication of the extent to which key government activities are decentralised to sub-national governments.

Governments spend money to provide goods and services and redistribute income. To finance these activities governments raise money in the form of revenues (e.g. taxation) and/or borrowing. The amount of revenues and expenditures per capita provide an indication of the importance of the public sector in the economy across countries. Variations across countries however can also reflect different approaches to the delivery of public services (e.g. such as the use of tax breaks rather than direct expenditures).

Decisions on the amount and type of goods and services governments produce, as well as on how to produce them, vary across countries. While some governments choose to outsource a large portion of their production of goods and services to non-governmental or private entities, others decide to produce the goods and services themselves.

Social expenditures are a measure of the extent to which countries assume responsibility for supporting the standard of living of disadvantaged or vulnerable groups.

Pension systems vary across countries and no single model fits all. Generally, there is a mix of public and private provision. Public pensions are statutory, most often financed on a pay-as-you-go (PAYG) basis – where current contributions pay for current benefits – and managed by public institutions. Private pensions are in some cases mandatory but more usually voluntary, funded, employment-based (occupational) pension plans or individual retirement savings plans (personal pensions).

Promoting economic and social development in partner countries has been a principal objective of the OECD since its foundation. The share of national income devoted to official development assistance (ODA) is a key indicator of a country’s commitment to international development. A long-standing United Nations target is that developed countries should devote 0.7% of their gross national income (GNI) to ODA.

Taxes on the average worker measure the ratio between the amount of taxes paid by the worker and the employer on the country average wage and the corresponding total labour cost for the employer. This tax wedge measures the extent to which the tax system on labour income may discourage employment.

Total tax revenue as a percentage of GDP indicates the share of a country’s output that is collected by the government through taxes. It can be regarded as one measure of the degree to which the government controls the economy’s resources.