Downloads
bn16.pdf
PDF | 965.09 KB
The government announced in June 1998 that, under the guidelines of its Code for Fiscal Stability, it would keep to two fiscal rules. These are designed to help to achieve the central economic objective of high and stable levels of growth and employment. This short paper starts by describing the two fiscal rules and then looks at the latest set of HM Treasury forecasts, which suggest that these rules will indeed be met. We then go on to discuss the level of uncertainty that is implicit in any public finance forecasts and the importance of remembering that, if the rules are to continue to be met, a degree of caution should be maintained.
Authors
Deputy Director
Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.
Sarah Love
European Commission (formerly IFS staff)
Report details
- DOI
- 10.1920/bn.ifs.2001.0016
- Publisher
- IFS
Suggested citation
C, Emmerson and C, Frayne and S, Love. (2001). The Government's fiscal rules. London: IFS. Available at: https://ifs.org.uk/publications/governments-fiscal-rules (accessed: 28 March 2024).
More from IFS
Understand this issue
The way Chancellors respond to economic news adds to our debt - here's why
1 March 2024
2p cut is welcome but fiscal risks are serious
23 November 2023
Debt can be redefined but it won’t disappear. Hard decisions are needed
23 October 2023
Policy analysis
Top-ups to the Scottish Budget for 2024–25 are likely – but huge uncertainty on their scale
22 February 2024
Outlook for the public finances
17 October 2023
No room for unfunded tax cuts or spending increases – this year or next
17 October 2023
Academic research
A monetary-fiscal theory of sudden inflations
20 December 2022
Rewriting the fiscal rules
12 October 2021
Spending Review 2021: plans, promises and predicaments
12 October 2021