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Fiscal Report

Garry Young

National Institute Economic Review, 1998, vol. 163, 27-36

Abstract: There has been a substantial improvement in the financial position of the public sector over the past year. The PSBR is expected to fall from 3 per cent of GDP in 1996/97 to about 1¼ per cent of GDP in the current fiscal year. The restrictive policy promised over a number of years, together with the effects of the economic cycle, is now having the desired effect. Further action by the new government to raise the tax burden has also improved the outlook for the public finances. Public borrowing is expected to continue to fall and the public sector balance sheet should begin to improve from the start of this year.

Date: 1998
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