Net Deficit in the Federal Budget Stabilized at 3.3 Percent of GDP

In 1992 the federal government stabilised the net deficit in the federal budget at 3.3 percent of GDP. A strong build-up of reserves increased the deficit by some AS 12 billion. Without these measures the shortfall would have decreased markedly compared to the year 1991. The budget of the central government had a restrictive impact on the economy in 1992. The tax burden rose significantly. In the medium term, the fast growth of transfer payments will render the task of budget consolidation more difficult.