1. In general, the OECD and IMF estimates of the impact of the automatic stabilisers attached to the fiscal balance are biased downwards.

2. If there is an external deficit, efforts by the private domestic sector to increase its overall saving as a percentage of GDP, will ensure the government fiscal balance is in deficit, irrespective of what the government desires.

3. When a government runs a continuous fiscal deficit, the public spending builds up over time and may eventually exposes the economy to inflation risk.