2018/19 Budget Communication 2018_2019 BUDGET COMMUNICATION | Page 17

Ø to allow for a transition to the latter objective, the
fiscal balance shall not exceed 1.8 per cent of GDP in
2018/19 and 1.0 per cent of GDP in FY2019/20; and
Ø following the attainment of the 0.5 per cent of GDP
objective for the fiscal balance, the growth of
recurrent expenditure shall not exceed the long term
rate of growth of nominal GDP.
The Bill provides for mechanisms to enforce its
binding fiscal commitments. To that end, an independent
Fiscal Responsibility Council is to be established with
responsibility for assessing the Government’s compliance
with the general principles, fiscal responsibility principles
and fiscal objectives, and to advise on fiscal and budgetary
matters of the Government.
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