2018/19 Budget Communication 2018_2019 BUDGET COMMUNICATION | Page 112

With the decline in the size of the deficit and the
ongoing growth of nominal GDP, the debt-to-GDP ratio is
projected to fall to 56.1 per cent in 2018/19, down from 57.2
per cent in 2017/18.
In the outer years of 2019/20 and 2020/21, the
growth of primary Recurrent Expenditure is being held to
2.5 per cent per year. As such, this category of discretionary
spending will decline from 16.8 per cent of GDP in 2018/19
to 15.4 per cent of GDP in 2020/21.
Capital Expenditure over the forecast horizon is
projected to grow by 2.5 per cent per year.
The projection for Recurrent Revenue beyond
2018/19 assumes that the revenue yield of the tax system
remains constant at its level of 20.1 per cent of GDP in
2018/19
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