Deficit-debt adjustment is the set of factors that explain why public borrowing or debt growth may differ from the reported fiscal deficit. It captures effects such as purchases or sales of financial assets, changes in the market value of outstanding obligations, and differences arising from accounting methods or data revisions. The measure links the government’s financial performance during a period with the change recorded in its debt stock.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.