213. For the medium term, I project that the annual average growth rate will be four per cent in real terms for the period 2013-16, while the underlying inflation rate will average 3.5 per cent. I forecast a small deficit in the Operating Account, Capital Account and Consolidated Account for 2012-13. The Operating Account will see a surplus for the period between 2013-14 and 2016-17. With expenditure on infrastructure projects ever increasing, a deficit will arise in the Capital Account for the whole period. As we have earmarked $50 billion for 2015-16 to support the healthcare financing arrangements, the Consolidated Account will also run a deficit in that year. Fiscal reserves are estimated at $670.4 billion by end-March 2017, representing about 27 per cent of GDP or 18 months of government expenditure. |
|