Will public spending really reach a record next year?

Ministries’ spending requests for the coming fiscal year have reached a record high, which might raise some questions about the government’s commitment to fiscal consolidation. However, these requests typically get trimmed down in the final budget, and are a poor guide to actual spending. Off-budget spending likely declined last year, and may do so again this year. With tax revenues rising as a result of the higher sales tax, the budget deficit should continue to narrow.