On July 19, 2018, the Minister of Finance presented to Parliament the Government’s Mid-Year Fiscal Policy Review of the 2018 Budget Statement and Economic Policy. According to the Minister of Finance, the overarching goal of government’s macro-fiscal policy is to deepen macroeconomic stability, grow the productive sectors of the economy, create jobs and ultimately move the economy beyond aid. Consequently, the government’s fiscal policy has been designed to reduce the fiscal deficit to ensure debt sustainability without compromising growth. It has also been designed to be growth-friendly, reformative and flexible to enable a quick adaptation to an evolving economy.
The Institute for Fiscal Studies (IFS) has reviewed the Government’s Mid-Year Review of the 2018 Budget and Economic Policy. The review presented below focuses on four thematic issues: an overview of recent macroeconomic performance; fiscal performance and adjustments to the fiscal framework; observations and comments; and conclusions.