The proliferation of new institutions continues. Proposals for new institutions include the National Centre for Innovation, Entrepreneurship and Technology, the Council of Employment Creation, and the National Development Bank. All of these new institutions assume functions that are tasks of existing institutions. They will compete both for tasks and scarce resources, such as human capital and government expenditure. The budget is based on high growth expectations.
High growth is both necessary and possible in the medium term.
However, it will need more decisive policy reform than is articulated in the budget. Of concern is also the high and increasing role for the public sector. A stable fiscal policy is a necessary but not sufficient condition for sustained growth. The credibility of policy is as well crucial. This credibility would be undermined if announced policies are not implemented.