03 May 2002
In its quarterly review published this week, the NIESR estimates a shortfall of £15bn-£20bn. 'Tax increases or spending cuts equivalent to 1.5% of GDP are needed to restore the long-term solvency of the public sector,' it says.
It believes that GDP growth will reach only 1.8% this year, below the Treasury forecast of 3-3.5%.
PFmay2002
