Structural consolidation without fiscal policy – the results of the tax revenue estimate of May 2012

In its 140th meeting the Working Group for Tax Revenue Estimates revised its revenue forecast upward again. The optimism of this estimate is supported by the development, favourable for tax revenue, of the distribution and use of the domestic product, although in the forecast of GDP there was hardly any correction. Rising wages and consumer spending are inducing a structural improvement of revenue. Fiscal policy is not having a restrictive effect but has thus far avoided a pro-cyclical expansion.