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Key Budget measures include
Maintaining economic stability
Productivity and enterprise in a flexible economy

Employment opportunity for all
Building a fairer society
High quality public services
Protecting the environment

Household income
Where taxpayers' money is spent
Further information
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The world economy has continued to face testing times over the past year, with uncertainty, particularly over the conflict in Iraq, affecting business and investment around the world. As a result, global growth, and especially growth in the Euro-area, has remained weak, with consequences for the UK economy. However, the Government's economic reforms have helped to ensure that the economy remains well placed to sustain steady and stable growth and to benefit when the world recovery begins. The Budget shows that:

• the economy is expected to grow by 2 to 2½ per cent this year as the world economy recovers, rising to 3 to 3½ per cent in 2004 and 2005;


• inflation is set to remain low and close to the Government's target; and


• the public finances remain sound and the Government is on track to meet its strict fiscal rules, with borrowing under control, at £27 billion this year, and debt lower than that in any other G7 major industrialised economy.

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