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Key Budget measures include
Maintaining a stable economy
High quality public services

Productivity and enterprise in a flexible economy
Employment opportunity for all
Building a fairer society
Protecting the environment

Household income
Where taxpayers' money is spent
Further information
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Prospects for the world economy continue to improve following a period of global uncertainty. The Government's reforms have helped to ensure that the UK economy has sustained steady and stable growth, and is well placed to benefit from the strengthening world recovery. The Budget projections show that:

• the economy is expected to grow by 3 to 3½ per cent in both 2004 and 2005, as forecast in last year's Budget and Pre-Budget Report;


• 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 fiscal rules, borrowing is £37.5 billion in 2003-04 and is set to fall, and in 2003 debt was the lowest of any of the G7 major industrialised economies.

Budget 2004 reports on progress on the policy requirements set out in the Government's June 2003 assessment of the five economic tests for membership of EMU. The Government does not propose that there should be another assesment at this time. Progress will be reviewed again at the time of next year's Budget.

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