Cabinet plans to spend on services and ‘rainy day’ fund

The Government is promising to spend the “fruits” of the recovery but at the same time has committed to being “prudent”. They have also pledged to keep the Opposition fully informed about their spending plans and the blueprint for the next budget. We are in the amicable and new season of open politics of course, we are told.

So what did we learn from the later-than-usual economic statement agreed by the Cabinet and released yesterday?

The summer economic statement — produced somewhat later because of the general election and government formation talks — gives the macro economic projections for the economy and the fiscal space available next year.