There has been much chatter that, to get better outcomes in advance of the general election, the government would adjust expenditure higher and the fiscal trajectory lower. This budget shows that there will be little election-related spending by the state other than the adjustments that were made in the medium-term budget policy statement (MTBPS) in favour of the maintenance of the social relief of distress grant. This is encouraging.

The minister of finance announced a budget that was mostly in line with MTBPS estimates. This despite the financial boost from the use of the Gold & Foreign Exchange Contingency Reserve Account (GFECRA) balances at the Reserve Bank, which some had feared would be an incentive for another spending spree. To the extent that this budget does not include material deterioration in fiscal metrics, it has gone counter to the worst of some analysts’ fears. The market has responded accordingly. ..

This article is free to read if you sign up or sign in.

If you have already registered or subscribed, please sign in to continue.

Questions or problems? Email or call 0860 52 52 00.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.