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Budget Speech


Medium Range Forecast

156.    For the medium term, the annual average growth rate will be four per cent in real terms for the four-year period between 2014 and 2017, while the underlying inflation rate will average 3.5 per cent.  The Operating Account will see a surplus for the period between 2014-15 and 2017-18.  With expenditure on infrastructure projects ever increasing, a deficit will arise in the Capital Account for the whole period.  Fiscal reserves are estimated at $850.3 billion by end-March 2018, representing 31 per cent of GDP or 21 months of government expenditure.



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