The ratio of household debt to disposable income was nevertheless still relatively low at 53 per cent at the end of June 2003. The steadfast growth in household consumption expenditure was accompanied by an annualised increase in real government consumption expenditure varying from quarter to quarter between 3½ and 4 per cent throughout the past year.
These growth levels have been maintained since the beginning of 2001 and signify the greater emphasis on service delivery in government’s fiscal strategy. The rate of increase in real fixed capital formation picked up during 2002 and reached an annualised level of 9 per cent in the second half of the year.