Creating a Healthy Fiscal Climate
The Economic and Fiscal Update
Description:... This document addresses the importance of creating a healthy fiscal climate as a precondition for durable growth and fob creation. The requirement for prudence in the planning assumptions used to derive the deficit forecast is discussed. The document presents updated economic assumptions for the period 1994 to 1996. It also presents the fiscal outlook under updated economic scenarios. It addresses the question of how to get back on track. To what extent should program spending reductions be relied on? Is there scope for new revenue-raising measures? The document sets out certain questions that are submitted to the standing committee on finance of the House of Commons as part of the budget consultation process. To provide the basic background information needed to address these questions, and to assess the tough trade-offs, detailed descriptions of government spending and revenues are provided in the annexes.
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