First, it provides an opportunity for the Government to consult the public on specific policy initiatives under consideration for the forthcoming Budget. Second, it presents an update on the outlook for the economy and the public finances, taking into account economic and other developments since the Budget. It is important to note that the public finance projections contained in the PBR present an interim forecast update. The PBR projections do not necessarily represent the outcome the Government is seeking. The figures presented are preliminary and the projections are subject to change in the period before the Budget.
Forecast errors can be large, even in the near term.
A further assessment is made at Budget time before decisions are taken to ensure the fiscal rules are met. Updated fiscal projections will be presented in the Pre-Budget Report to be published on 9 November 1999. The prudence of the Government's medium-term plans was also reflected in public sector net worth which was forecast to rise slightly following years of marked decline. Actual PSNB was projected to rise a little into 1999-2000, so that the automatic stabilisers could play their role in supporting monetary policy. This decision was taken against a backdrop of a slowing domestic economy following weaker world growth.