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Budget 2017 Home Page Budget Economic and Fiscal Update 2017

Additional Fiscal Indicators

The Treasury calculates two summary fiscal indicators: the cyclically-adjusted balance (CAB) and the fiscal impulse indicator.

  • The CAB adjusts the operating balance before gains and losses (OBEGAL) for the cyclical position of the economy. The CAB is subject to uncertainty because it uses estimated variables and is sensitive to new information, particularly regarding the output gap.
  • The fiscal impulse indicator uses the change in a cash-based version of the fiscal balance to estimate the marginal contribution of discretionary fiscal policy to aggregate demand.

Further information on the methodology, interpretation and limitations behind the indicators can be found in Treasury Working Papers 02/30 and 10/08.[1]

This section discusses the Treasury's central estimates of the CAB and fiscal impulse. The next section discusses sensitivity analysis. Detailed tables of data can be found at the end of the Additional Fiscal Indicators section.

Notes

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