Given the fragile nature of the recovery, the planned increase in public spending in 2010 should be implemented. It must, however, remain cast within a medium-term framework consistent with debt sustainability, which is likely to imply substantial spending restraint in the coming cyclical upswing. The downturn and the attendant large deficits have also made it more urgent to increase the efficiency of public expenditure.
©OECD Observer 2010
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