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Key Budget measures include
Maintaining a stable economy
Productivity and enterprise in a flexible economy

High quality public services
Employment opportunity for all
Building a fairer society
Protecting the environment

Household income
Where taxpayers' money is spent
Further information
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In 2005 the world economy was affected by the sustained rise in global oil prices. While many emerging markets continued to grow strongly, growth was slower in some advanced economies, including the major European countries to which the UK exports. The Government's economic reforms have helped the UK to maintain macroeconomic stability and continue to grow through this challenging period. The Budget projections show that:

• the economy is expected to grow by 2 to 21¼2 per cent in 2006, picking up to 23¼4-31¼4 per cent in 2007 and 2008, as forecast in the Pre-Budget Report;
  
  
• inflation is set to remain low and stable; and
  
  
• the public finances remain sound and the Government is meeting its fiscal rules. Borrowing is forecast to be £37 billion in 2005-06 and debt is lower than in the US, Japan, Italy, France and Germany.