1996 Federal Budget Reflects Consolidation Efforts

The 1996 budget constitutes an intermediate step in the process of fiscal consolidation. In its implementation the goal of reducing new debt was achieved. Envisaged spending cuts and revenues were right on target. The preliminary outturn for 1996 shows that a sound basis has been attained for the 1997 budget, although some items on the expenditure and income sides deviate from projections to an extent that may threaten to burden the federal budget in the long run.