Budget Speech

164.      For the medium term, with the gradual recovery of the global economy, I estimate that the annual trend growth rate will return to four per cent in real terms for the period 2011-14, while the underlying inflation rate forecast will average three per cent. I forecast a surplus in the Operating Account for the period between 2011-2012 and 2014-15, which will help meet the capital deficit arising from our enormous expenditure on infrastructure in these few years. The deficit in our Consolidated Account is expected to decrease gradually in the next few years, and we will achieve a balance by 2013-14. I estimate that the fiscal reserves will be around $470 billion by end-March 2015, representing approximately 22 per cent of our GDP and equivalent to 15 months of government expenditure. The total deficit for the financial years between 2010-11 and 2014-15 is estimated to reach around $40 billion.

Content | Next Page