Fiscal policy has to make growth inclusive yet sustain it to reverse the threatened cyclical slowdown in industrial growth, while improving longer-run or structural growth prospects. How well has the budget tackled these tasks?
There has been a fine balancing act. The saving grace is that much of the expenditure for target groups is in health and education, which can give them and the economy long-term benefits. Relief to taxpayers will put more money in their hands to spend, thus boosting industry and smoothing the cycle. The cut in excise duty benefits industry. The reduction in production cost reduces inflationary pressures, a major objective of the government.