“Most of the changes announced in the 2000 Budget Speech were relatively minor. Of greater importance for the economy are the rates of increase of government spending, which continued at more than 20% in the current year. This follows similar increases in the previous three or four years. That is a major explanation of why the economy continues to grow at about 8%. In sharp contrast, the budget estimates for 2000/01 are for an increase in total government
spending of less than 3% (a fall of 4% in real terms). If implemented, this would
generate a major slowdown in the rate of growth of the economy.”
