This year’s BFP is being prepared under very serious downside risks in the international outlook for 2012 stemming from weak global demand, lower commodity prices as well as high oil prices.
There is no doubt that these factors will affect domestic macro-economic conditions. These changing conditions have been taken into account in formulating the macro-economic policies and the budget framework for 2012/2013 and the medium term.
They not only present challenges but also opportunities for the economic and social progress of the country.
The Budget Framework Paper therefore articulates the flexible policies that have been designed to respond to these opportunities and challenges to move the country forward.