1. The success of Chancellors measures is highly dependent on the accuracy of forecasting of growth in the budget.

The growth of GDP and budget forecasting are highly correlated and are kept in a exhibiting balance. The accurate forecasting will forecast and indicate the fiscal ease and fiscal arithmetic, though it will be also based on some economic assumptions. The problems which are there in forecasting future growth are numerous. Some of the important issues are the cyclically adjusted budget balance, projected surplus on budget, dynamic offsetting, changed tax policy effecting rolling back of business tax, treasury forecast, inflation profile and unexpected downturn in the vulnerable economic fortunes. 2. From the view expressed in the article, the budget was contractionary which implies that the economic is in the equilibrium i.e. government spending is fully funded by the tax revenue o the level of economic activity. This is exactly highlighted by the viewers as, budget is offset of spending cuts with tax increase, the fiscal impact on the economy is balanced and first tax and spend budget.

3. The evidence of the claim that the budget was a tax on jobs and would reduce investment is pointed out at various levels. The changes in the budget involved rise in national health insurance taxation for the employers. The risk here is the knock-on effect on profits which would have adverse impact on planned investments. Furthermore due to these measures inflation will grow thereby reducing investments.