The creation of such instruments would also ensure that the fiscal policy mistakes made in 2011-12 would not be repeated so that we do not suffer from avoidable double dip recessions. Over the business cycle, we also need co-ordinated fiscal policies to ensure that the overall fiscal policy stance is sufficiently countercyclical, thereby contributing to economic stabilisation.
These areas present particular challenges: Firstly, upgrading our economic and social infrastructure (and improving public services) in health, education, public utilities, transportation. One cannot overestimate how critical this is to raising our productive capacity as well as our social welfare. Secondly, the Government has indicated its intention to bring legislation on the Revenue Stabilisation Fund to Parliament during this fiscal year.