Such a fiscal stance will strongly support the long-term sustainability of the economy and keep debt at a moderate level. Raising the level of growth Maintaining macroeconomic stability does not necessarily mean that we should be contented with lower levels of growth. We can and we must raise the long-term potential growth rate of the economy while maintaining stability.
The only way to raise the potential of the economy is by reforms to remove structural impediments to the effective allocation of our scarce resources, improve productivity and change our industrial culture. Government has announced initiatives in these areas in public service, public enterprises, labour and financial management. I welcome the passage of the Finance Management Bill in Parliament recently.