Question
Instruction: Read the passage and study the table. Then answer the questions that follow: It's official: Budget increases will not tax recovery, It's now official.
Instruction: Read the passage and study the table. Then answer the questions that follow:
It's official: Budget increases will not tax recovery,
It's now official. The tax increases of last year's two Budgets will not stall
Britain's economic recovery.
The Treasury's summer economic forecast revised up the prediction of UK
economic growth this year to 2.75 percent from 2.5 percent at the time of last
November's Budget.
Although the forecast says growth of consumer spending may slow a little in the
short term as a result of tax increases, this is not expected to be reflected in gross
domestic product. The Treasury expects the personal savings sector ratio, which fell last
year to 11.5 percent from 12.25 percent in 1992, will fall further this year to less than 1 0
percent. This, and a quickening of disposable income growth to 2.5 percent next year
from 1 percent in 1994, should enable consumers' expenditure to increase by 3 percent
both this year and next.
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