Based on the budgets of the central and local governments fiscal policy is expected to have a neutral impact on economic activity in 2005.
Fiscal policy in 2005 is viewed to be in line with the expected business cycle given the degree of uncertainty about projections of growth and unemployment, cf. Economic Survey , December 2004.
The current account, the central government account and the general government finances are expected to show large surpluses.
The political agreements on the central government budget bill for 2005 give special priority to research and education, the health sector, families and children, the elderly and cultural initiatives.
Read Budget Outlook, December 2004