This was not as radical a Budget as many had feared and some had hoped. It was, as the Chancellor presented it, a “One Nation” Budget. From the macroeconomic viewpoint, the most important aspect was the smoothing of the intended fiscal tightening across the Parliament, with the result that the budget deficit turns into a surplus one year later than originally planned. This means that the immediate threat to the economy from tough fiscal tightening has been alleviated and it makes it all the more likely that the economy will be able comfortably to absorb the fiscal squeeze.
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