Maintaining economic stability

Last year was a difficult year for the world economy but the UK continued to experience steady and stable growth, growing faster than any of the G7 major economies. The Budget shows that:

the public finances remain on track to meet the Government's strict
fiscal rules, with both borrowing and debt well under control;

the economy is expected to grow by 2 to 21/2 per cent this year and by
3 to 31/2 per cent in 2003; and

inflation is also set to remain low and close to the Government's target the longest period of sustained low inflation since the 1960s.